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    Reference: 20150911
    Release date: 27 October 2016

    Promoter – Financial Intermediary

    The project is realised by a consortium comprising the Norwegian transmission system operator (TSO) Statnett and DC Nordseekabel GmbH & Co. KG, each with a 50 % share. TenneT, one of the four German TSOs, and KfW each hold 50 % of the shares in DC Nordseekabel.

    Location

    Description

    The proposed project concerns the implementation of a bipolar high voltage direct current (HVDC) link connecting 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 around 623 km.

    Additionality and Impact

    The project establishes the first interconnection between Germany and Norway, thereby improving diversification 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 North Sea Offshore Grid region. Initially, it will allow a better optimisation of generation dispatch, and provide opportunities to evacuate surplus hydro generation from Norway to Germany. In the medium term (by 2030), as more RES is added to the European system, it will also help ease constraints and allow the evacuation of surplus renewable generation from Germany to Scandinavia. The project tackles multiple market failures, namely market integration, and negative carbon and air pollution externalities. It therefore supports the EIB priority policies on Competitive and Secure Energy and Climate Action and contributes to achieving the national and EU long-term energy and climate goals.The Bank's funding provides the project with longer loan maturities and grace periods as well as availability periods than what respective market participants are offering. The EIB loan includes a taylor-made tranching, which is able to react to and mirror the project's schedule and particularities. This flexibility is adding value to the financing structure, which other financial providers do not provide to this extent. The Bank offers a welcomed diversification of the Borrower's portfolio of lenders and provides a signalling effect with its participation in the project's funding.

    Objectives

    The project will help to increase substantially the interconnection capacity between Norway and the rest of Europe, thereby improving diversification, security and sustainability of power supply and enhancing electricity market integration.

    Sector(s)

    • Energy - Electricity, gas, steam and air conditioning supply

    Proposed EIB finance (Approximate amount)

    EUR 882 million

    Total cost (Approximate amount)

    EUR 2104 million

    Environmental aspects

    The German route of the project is implemented entirely underground/undersea and therefore it falls under neither Annex I nor Annex II of the Environmental Impact Assessment (EIA) Directive. The Norwegian route of the project, on the other hand, comprises a 53-km long overhead line. Therefore it falls under Annex I of the EIA Directive. The potential impact of the project includes visual impact, vegetation clearance, electromagnetic fields, noise nuisance, impact on marine flora and fauna, and birds' collision and mortality. Environmental impact studies have been carried out as applicable and mitigating and/or compensation measures will be applied as necessary.

    Procurement

    The Bank will require the promoter to ensure that contracts for the implementation of the project have been/shall be tendered in accordance with the relevant applicable EU procurement legislation, (i.e. Directive 2004/17/EC / Directive 2004/18/EC where applicable, as well as Directives 89/665/EEC and 92/13/EEC) as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.

    Status

    Signed - 3/04/2017

    Disclaimer

    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Germany Norway Energy