EIB supports first interconnection between Germany and Norway
3 April 2017
The European Investment Bank (EIB) will provide a EUR 350 million loan to TenneT Holding B.V. to finance “NordLink”, the first interconnection between Germany and Norway across the North Sea. The bipolar High Voltage Direct Current (HVDC) link will have a capacity of 1,400 MW and a total route length of 624 km. It will improve diversification and security of supply and enhancing electricity market integration in both countries, and more widely between Northwest Europe and Scandinavian countries. It is also designated as a Project of Common Interest in the Priority Corridor Northern Seas Offshore Grid.
Ambroise Fayolle, EIB Vice President, responsible for Germany, commented: “Security of electricity supply and effective use of renewable energy will be improved significantly. Initially, NordLink will bring surplus hydro generation form Norway to Germany. In the medium term, it will help ease constraints and allow the evacuation of surplus renewable generation from Germany to Scandinavia. For us, the EU Bank, forward-looking investments in modern energy infrastructure are key to reach our ambitious climate goals.” And the Vice President added: “I am very glad that we are continuing our long and successful relationship with TenneT as the company is one of the leading electricity transmission system operators in Europe, and one of the few with cross border operations, which strengthens market efficiency.”
Otto Jager, CFO TenneT: "With over EUR 1.5 billion of total funds committed, the EIB has proven to be an important and reliable financing partner for our green onshore and offshore high voltage transmission projects. The support of the EIB for this project shows the importance of investments like NordLink, integrating European electricity markets.With this subsea interconnector we can exchange energy between two complementary energy systems. There’s the increasing amount of wind and solar power produced in Germany on the one hand and the production of energy from hydroelectric power in Norway on the other. NordLink is a connection of European pertinence that benefits all countries, especially North-west Europe."
The NordLink project will be realised by the Norwegian TSO Statnett and DC Nordseekabel GmbH & Co. KG, each with 50% ownership. DC Nordseekabel GmbH & Co. KG is equally owned by TenneT and the German promotional bank KfW. DC Nordseekabel is responsible for the construction of the German part of the project, including permits. With its capacity of 1,400 megawatts, NordLink can provide renewable energy for more than 3.6 million German households and will be able to transport for example wind energy generated by approximately 466 wind turbines of 3 megawatts. This is comparable to the capacity of a large conventional power plant.
TenneT Holding B.V. and the EIB today closed the issuance of EUR 100 million hybrid capital by TenneT (rated A3/A-). EIB has purchased EUR 100 million hybrid securities to be consolidated and form a single series with TenneT’s hybrid Securities programme launched on 12 April 2017.
The European Investment Bank (EIB) is providing a EUR 500m corporate loan to TenneT. The funds are being made available in connection with the construction and operation of three offshore high voltage direct current (HVDC) lines that will connect wind farms in the North Sea with the German onshore electricity network. The loan agreement was signed today in Arnhem.