NordLink: "Green cable" to link Norway and Germany
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.
50/50 partnership between Norway and Germany
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.
"NordLink is the most significant project in the European energy sector and a prime example of the energy transition in Germany as well as Europe," said Markus Scheer, member of the Management Board of KfW IPEX-Bank. "KfW's involvement shows our clear commitment to climate change mitigation and environmental protection. The exchange of electricity from wind and hydropower made possible by the subsea cable gives us supply security and stable energy prices and also increases the share of renewables in the energy mix. We are proud to be part of it and to have supported NordLink from the planning stage all the way to commissioning."