Norway and Germany to Share Power

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The first direct connection of Norway and Germany's electricity grids has advanced with the signing of a new deal between transmission companies and their German partner.

A deal to construct a 1,400-megawatt (MW) subsea cable between the countries has been signed by Norway's grid operator, Statnett (Oslo), Dutch grid operator TenneT TSO BV (Arnhem, Netherlands) and German bank, KfW IPEX-Bank. The Memorandum of Understanding (MoU) calls for an investment of up to €2 billion ($2.6 billion) and the project will be owned 50:50 by Norway and Germany, with Statnett controlling the Norwegian share and the German 50% shared between TenneT and KfW.

The high voltage direct current (HDVC) interconnector known as Nord.Link will enable energy to flow between both countries, in particular renewable energy, which the companies claimed will help Germany prepare for its exit from the nuclear power sector. The cable will be commissioned in late 2018 and run 600 kilometres (km) under the North Sea, connecting southern Norway to the northern German state of Schleswig-Holstein.

Nord.Link is designed to combat one of the main issues with renewable energy: storage. Excess solar and wind energy will be exported from Germany to Norway while hydropower can be exported to Germany when renewables underperform. The cable is also expected to stabilise energy prices in both countries as well as provide greater security of supply.

"This is an important milestone for Statnett, for Norway, and indeed for Europe," said Auke Lont, CEO of Statnett. "The interconnector will enhance our domestic security of supply during dry and cold winters, and will also incite more stable energy prices throughout the year. The cable will contribute to greater efficiency in the Northern European power market and to increased production of renewable energy in Europe. But first and foremost, the realisation of an interconnector between Norway and Germany represents a major leap towards a more integrated European market, something that will be to the benefit of all customers."

Martin Fuchs, Chairman of the Board of TenneT TSO GmbH, added: "We have been preparing this subsea interconnector between Norway and Germany for two years. It is a good development for the integration of wind power and a vital contribution to the German energy transition".

This summer saw Norway strengthen its energy ties with the U.K. when the Norway-UK Energy Partnership for Sustainable Growth was signed by Norway's Prime Minister Jens Stoltenberg and his U.K. counterpart, Prime Minister David Cameron. For additional information, see June 12, 2012, article - Norway and U.K. Strengthen Energy Ties.

Statnett is working with the U.K.'s National Grid to lay the HVDC Norway--UK subsea cable which will run from Hylen, Sundal in Norway to Blyth in the United Kingdom. The 1,400 MW cable will measure more than 700km.

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