The European Investment Bank (EIB) announced on Monday it will lend EUR 350 million (USD 373m) to finance the 1.4-GW NordLink subsea cable project, the first direct link between the Norwegian and German energy markets.
The 624-km (388-mile) NordLink will be built by Norwegian transmission system operator (TSO) Statnett and DC Nordseekabel GmbH & Co KG. The latter is equally owned by Netherlands-based TSO TenneT Holding BV and German development bank KfW and is responsible for the German part of the project.
“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,” said Ambroise Fayolle, EIB vice president, responsible for Germany.
NordLink will be able to provide renewable energy for over 3.6 million German homes. For example, it will be able to transport wind power produced by about 466 wind turbines of 3 MW each, EIB said.
The project developers held a ground-breaking ceremony in September 2016. The interconnector is expected to be in operation in 2020.