The European Investment Bank (EIB) has signed a EUR 300 million loan agreement with Norwegian transmission system operator (TSO) Statnett for the completion of the NordLink interconnector between Germany and Norway.
The signature comes shortly after the first part of the financing for the interconnector was signed with TSO TenneT for the German side of the project.
Once completed, a high voltage direct current (HVDC) link will connect Norway and Germany across the North Sea. The project will have a rated capacity of 1,400 MW, terminal voltage of +/- 500 kV and a total length of 624 kilometres.
“With a total investment of 1,5-2 Bn Euros, The NordLink interconnector is one of Statnetts largest investments. This project is a major step towards a more climate friendly and integrated energy system, and contributes to more renewable energy in both countries. The participation of EIB in funding the project is a great advantage and adds a significant part of Statnett's funding portfolio. Nordlink is the third interconnector that the EIB has helped Statnett finance and we strongly appreciate EIB's continued commitment and support to help finance a more electric and climate friendly future,” said Knut Hundhammer, CFO of Statnett.
In September 2016, Statnett and DC Nordseekabel officially started the construction of NordLink in Wilster, Germany. The project is expected to be completed by the end of 2019.
Back in March 2015, ABB won a contract to design, engineer, supply and commission two ±525 kV, 1,400 MW converter stations for the project. One station will be situated near Tonstad in southern Norway and the other near Wilster, where the ground-breaking ceremony was held.
ABB will also design, manufacture and install the 525 kV mass impregnated (MI) cable system in the German sector, with a route of 154km submarine and 54km underground.
The NordLink interconnection project is being developed by Statnett and DC Nordseekabel, each with a 50% ownership. DC Nordseekabel is equally owned by TenneT and the German promotional bank KfW, and is responsible for the construction of the German part of the project, including permits.
The project is designated as a Project of Common Interest in the Priority Corridor Northern Seas Offshore Grid.