OSLO: Norwegian and German power grid companies and Germany's development bank KfW are to make the final investment decision on a 1.5-2 billion euro ($1.7-2.3 billion) electricity link between the two countries on Tuesday, the partners said.
The high voltage direct-current (HVDC) interconnector, NordLink, will be over 600 km long, including a subsea section of more than 500 km, and will be able to transmit 1,400 megawatt (MW), sufficient to supply power to more than 600,000 households.
"By signing the ownership agreement later today, the partners Statnett, TenneT and KfW, which is represented by KfW IPEX-Bank, would make the final investment decision for the project," the partners said in an embargoed statement.
Norwegian and German power grid companies Statnett and TenneT have previously said they aimed at having the first ever power link between Norway and Germany by 2018.
"The interconnector will contribute to a climate friendly and efficient energy system for the future," said Statnett's Chief Executive Auke Lont.
The interconnector would allow Norway to import cheaper wind and solar power from Germany, when wind blows and sun shines there, saving water stored in reservoirs until output from intermittent renewables drop and prices in Germany rise to make exports profitable.
The cable - which will run from the southern Norwegian town of Tonstad in Norway to the town of Wilster on Germany's northern coast - will also boost security of supplies in both countries.
"This is.a major step towards a more integrated European energy market, and an important contribution to the German energy transition," said Mel Kroon, the chief executive of TenneT.
Germany decided to shut down all its nuclear power plants by 2022, replacing them with electricity produced by wind turbines and solar panels, which requires flexible balancing power such as hydro.
The project will be implemented by Statnett and DC Nordseekabel GmbH&Co. KG, a joint venture by TenneT and KfW.
German TSO is a part of the Dutch national power grid company TenneT, which decided last year to invest over 600 million euros in a new subsea cable that will connect the Netherlands and Denmark.
In 2008, TenneT completed the 580 km, 700 MW NorNed cable between the Netherlands and Norway, and in 2011 the 260 km, 1,000 MW BritNed cable from the Netherlands to the UK.
Norway also plans to build another interconnection of 1,400 MW capacity to Britain by 2020.
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