By signing the ownership agreement today, partners TenneT, Statnett, and KfW, which is represented by KfW IPEX-Bank, have made the final investment decision for the project. Construction of the system will start as soon as contracts are signed with the contractors responsible for the production and installation of the cable and converter stations. ‘This is again a major step towards a more integrated European energy market, and an important contribution to the German energy transition. With this interconnector we can exchange energy between two complimentary energy systems, with Germany's increasing production of wind power and solar power on one side, and Norway's production from hydropower on the other’, said Mel Kroon, CEO of TenneT. 'The signing today is a very important step for all three partners. The interconnector will contribute to a climate friendly and efficient energy system for the future. It will increase security of the power supply for consumers and create value for producers on both sides of the interconnector. The Nordlink investment decision underlines our conviction that the future is electric’, said Statnett's CEO, Auke Lont. ‘The NordLink interconnector is one of the major projects in the European energy sector, and will have a large impact on the European energy system. The financing of this project together with our partners is a cornerstone for the turnaround in the German energy market and an important project for KfW. We are proud to be part of it’, said Markus Scheer, member of the Management Board of KfW IPEX-Bank.
Exchange between Germany and Norway
Connecting Norwegian hydropower to German wind energy will be benefitial for both countries. When for instance a surplus of wind energy is produced in Germany, this can be exported to Norway via NordLink. The water reservoirs in Norway will then function as natural storage for wind energy by retaining the water in the reservoirs. Likewise, Germany can import the renewable Norwegian hydropower when demand is high. The interconnector comprises an investment volume of approximately EUR 1.5 - 2 billion. The NordLink project will be realised by the Norwegian TSO Statnett and DC Nordseekabel GmbH & Co. KG, both of whom have a share of 50%. The German TSO TenneT and German promotional bank KfW both have share of 50% in DC Nordseekabel. DC Nordseekabel is responsible for the construction of the German part of the project, including permits. The HVDC link will have a capacity of 1.400 megawatts (MW) and will run between Tonstad in Norway and Wilster in Schleswig-Holstein/Germany.
TenneT is Europe’s first cross-border grid operator for electricity. With about 21,000 kilometres of (extra-) high voltage lines and 41 million end-users in the Netherlands and Germany, TenneT ranks among Europe’s top 5 grid operators in Europe. TenneT’s focus is to develop a North-west European energy market and to integrate renewable energy TenneT employs over 2,800 people. In 2013 TenneT had a turnover of EUR 2.24 billion. TenneT's assets totalled EUR 12.7 billion (half year results 2014). Taking power further.
Statnett is responsible for the development and operation of the Norwegian power grid, including interconnectors to several other European countries. Statnett employs more than 1,100 people and operates 11,000 kilometres of high voltages lines. In 2013 Statnett had a turnover of 4.6 billion NOK.
KfW is one of the world’s leading promotional banks. With its decades of experience, KfW is committed to improving economic, social and ecological living conditions across the globe on behalf of the Federal Republic of Germany and the federal states. To do this, it provided funds totalling EUR 74,1 billion in 2014 alone; and of this, 36 % went into measures for protecting the environment and combating climate change. In Germany, the KfW Group is represented in Frankfurt, Berlin, Bonn and Cologne. Its network includes 80 offices and representations around the world.
Statnett Christer Gilje Vice President Corporate Communications Mobile: +4795237128 christer.gilje(at)statnett.no www.statnett.no KfW IPEX-Bank Thomas Krick Communication Direct line: +49 69 7431 8454 thomas.krick(at)kfw.de www.kfw-ipex-bank.de TenneT Mathias Fischer Corporate Communications Direct line: +49 5132 89 2308 Mobile: +49 151 27657832 mathias.fischer(at)tennet.eu www.tennet.eu