Germany and Norway agree interconnector deal

EUROPE: Plans to build the first subsea cable between Germany and Norway have taken a step forward with an agreement between the countries' transmission operators and German bank KfW.

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Under the deal, transmission operators Statnett and TenneT, and KfW, have linked up as equity partners. Statnett hold a 50% share, with KfW and TenneT splitting the remainder equally.

The 1.4GW Norger link would allow fluctuations in German wind-energy generation to be compensated with the hydro-generated power that dominates the Norwegian electricity market.

The link is the first of a number planned for the North Sea, including Denmark and the UK, and Norway and Denmark. It was originally supposed to be completed by 2015.

In August, Statnett announced southern Norway's grid would need to be expanded before the project could go ahead. "New analyses show that extensive grid upgrades are necessary before any further international connectors can be put into operation," it said.

Other links in the pipeline include the 700MW Skagerrak 4 link between Norway and Denmark, and the 1.2GW HDVC Norway-UK link.

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