Norway: EIB completes financing for Nordlink with Statnett
2 June 2017
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 bipolar high voltage direct current (HVDC) link will connect Norway and Germany across the North Sea. The project will have a rated capacity of 1400 MW, terminal voltage of +/- 500 kV and a total length of 624 km.
The EIB Vice-President responsible for Energy Andrew McDowell commented: “The security of supply and effective use of renewable energy remain high on the agenda for EIB financing. Germany has long regarded the sustainability of the energy it uses as very important and the interconnector will allow it to import Norwegian hydro energy when needed, while also allowing exportation of its own surplus renewable generation towards Scandinavia. The EU Bank has set itself the goal of channeling at least 25% of its investments towards climate action relevant projects, and this project is a perfect example of how seriously we take this."
“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,” added Knut Hundhammer, CFO of Statnett.
The loan is the first EIB project in Norway since 2015, when it lent EUR 200 million for the expansion of Bergen Airport. This new interconnector project will improve diversification and security of supply and enhance 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.
The 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.
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.