Especially electricity from renewable energy will flow between the two countries. The interconnector will make it possible to export surplus solar and wind power from Germany to Norway, while Norway will export hydroelectric power to Germany when the weather is cloudy and calm. The water reservoirs in Norway will function as natural storage for the energy imported from Germany as they will be able to retain their water.
The 1,400 megawatt subsea cable will link the electricity markets of both countries for the first time. The connection will boost integration among the energy markets in northwestern Europe, improve power supply reliability, and help keep energy prices stable. Both countries adhere to the EU's climate policies, and the subsea cable will be a great leap forward towards CO2-free energy supply.
The North Sea cable project has a total investment volume of almost EUR 1.8 billion. The three contracting partners of the project, Statnett (Norwegian state-owned power company), KfW (represented by KfW IPEX-Bank) and TenneT TSO GmbH (German transmission system operator) agreed on a 50/50 partnership between Norway and Germany in their corresponding framework agreement. Under this agreement Statnett will own 50 per cent of the project, while on the German side, KfW and TenneT will jointly own the remaining 50 per cent through a project company founded especially for the cable project.