Norway and U.K. to Develop $1.6 Billion Subsea Energy Interconnector

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Researched by Industrial Info Resources (Sugar Land, Texas)--The United Kingdom and Norway have announced plans to build an undersea power interconnector to link the two countries' power grids. The project is expected to help both countries share electricity from renewable energy sources. The power interconnector, claimed to be the world's longest, will assist in transmitting power from the windfarms in the North Sea to Norway and hydropower from Norway to the U.K. The U.K. is planning to construct several windfarms in the North Sea in the next couple of years as part of the country's strategy to develop clean energy sources, bring down carbon-dioxide emissions, and achieve renewable energy targets. Hydropower is one of the primary sources of power generation in Norway.

Experts have observed that with the exchange of renewable energy on the network, Norway could use wind power from the U.K. on windy days, and hydropower generation could serve as a backup for the U.K. While the U.K. is focusing on developing windfarms in the country, it has become critical to have a strong backup energy source on calm days, when the country is forced to generate power from fossil-fuel-based power plants, which has long-term climate change implications. The U.K. has limited hydropower resources, and the interconnection with Norway is expected to help overcome this problem.

The proposed $1.6 billion (1 billion euro) interconnector will be built as a 50:50 partnership. The completed prefeasibility study recommends the use of high-voltage direct current (HVDC) transmission links. Norwegian transmission system operator Statnett (Oslo), and National Grid plc (NYSE:NGG) (London, England) have signed an agreement to build the interconnector. The companies plan to jointly carry out studies to identify the best regulatory model and the optimal route for the connection. The agreement expires January 2011. Statnett and National Grid will have to complete the studies and apply for approvals and licenses in their respective countries before the contract expires. This will be followed by discussions on the instruments of funding and investment decisions. Statnett has proposed to run the interconnector cable into Norway at Kvilldal in Rogaland. A decision on the landing point in the U.K. has not been finalized.

Statnett is also constructing another interconnector that will link Norway to Denmark. In January, Statnett submitted a proposal for the Skagerrak 4 cable link. The Skagerrak 4 undersea cable, which is estimated to be 130 kilometers long, will help develop wind power in Denmark and provide energy security to Norway. The $531 million (360 million euros) project, which is being jointly developed by Statnett with Denmark's Energinet.dk (Fredericia), is expected to be ready by 2014. The interconnector will link Kristiansand, near Vennesla in southern Norway, with Tjele in Denmark.

National Grid is also constructing a power link that will link Britain with the Netherlands. The project is a joint venture with Norwegian company TenneT TSO BV (Arnhem). For additional information, see September 23, 2009, article - BritNed Begins Construction of $408 Million Netherlands-U.K. Energy Interconnector.

Wind power accounts for 4% of the U.K's total energy generation. In order to achieve the European Union's renewable energy targets for 2020, the U.K. is expected to develop new clean energy projects, which will increase the contribution of renewable energy to 15% of the country's overall energy portfolio.

According to Nick Winser, director of National Grid, the Norway-U.K. interconnector will assist European nations in balancing their electricity grids with wind power, hydropower and other sources of renewable energy. The interconnection is also expected to play a vital role in the development of the North Sea super grid. This project is part of the E.U.'s proposal to link windfarms in the North Sea and other parts of Europe to energy grids.

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