Statnett, Tennet and KfW Reach Agreement to Build Electricity Interconnector Between Germany and Norway

Statnett, the Norwegian Transmission System Operator (TSO), the German TSO Tennet and the state-owned German KfW Development Bank (KfW) have agreed to team up as equity partners in a project set up to develop and construct a subsea interconnector between Germany and Norway, with Statnett holding 50 %, KfW at least 25 % and the remaining interest held by Tennet, Statnett announced. Tennet said an agreement was being drafted and should be signed in September 2012. The company confirmed the involvement of KfW in the project it estimated to cost between EUR 1 billion to EUR 1.5 billion, but did not further specify the financial commitments of the partners. Tennet also said a second interconnector was planned at a later stage.

According to Statnett, the (first) interconnector between Germany and Norway has a planned capacity of up to 1400 MW. The interconnector could be operational by 2018 if the project received all necessary licenses in 2013 and the necessary agreements with suppliers could be reached,  Statnett says.

The cable would contribute to a further integration of the North-European power markets and strengthen the North-European power grid, helping to integrate the increasing renewable energy production in the whole region, thereby working towards the EU’s climate and energy goals, Statnett points out. The cable would also help to stabilise electricity prices, thus leading to consumer benefits, Tennet adds. The company welcomed the government’s support for the project through KfW.

Source: Statnett; Tennet

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