(Updates with project completion date, quotes)
OSLO Feb 10 The first power cable
interconnection between Norway and Germany will be in place by
the end of 2019, a year later than originally planned, due to
insufficient cable production capacities, Norway's grid
operator, Statnett, said on Tuesday.
The link would enable Norway to import cheaper wind and
solar power from Germany while storing energy in its water
reservoirs, and export power to Germany when output from
intermittent renewables drop there.
Norwegian and German grid companies and Germany's
development bank KfW made the final investment decision on
Tuesday on the 1.5-2 billion-euro ($1.7-2.3 billion) project.
"The interconnector will be finished in the fourth quarter,
2019, and after a trial period it will be in commercial
operations in 2020," said Christer Gilje, a spokesman at
The original plan was to have the link in place in 2018.
"After negotiations with suppliers we found that there was
not enough production capacities. There are not so many
producers to provide this cable," he added.
Gilje declined to comment further citing a 10-day standstill
period for contracts with suppliers for the cable and
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 have a capacity of 1,400 megawatts
(MW), sufficient to supply power to more than 600,000
Leading submarine direct-current cable and related equipment
manufacturers include ABB, Siemens, Nexans
, Prysmian and Alstom.
Statnett, the German arm of Dutch grid operator TenneT
and KfW, represented by KfW IPEX-Bank, signed the
ownership agreement on Tuesday, the companies said in a
statement earlier on Tuesday.
The project will be 50 percent owned by Statnett and 50
percent by DC Nordseekabel GmbH&Co, a joint venture equally
owned by the German arm of TenneT and KfW.
The cable, which will run from the southern Norwegian town
of Tonstad to Wilster on Germany's northern coast, will increase
security of supplies for both countries.
Meanwhile TenneT (IPO-TTH.AS) also plans to build a 700 MW
subsea cable linking the Netherlands and Denmark.
Norway also plans to build another interconnector of 1,400
MW capacity to Britain by 2020 and Statnett expects to make the
final investment decision in the first quarter of
($1 = 0.8832 euros)
(Reporting by Nerijus Adomaitis; Editing by Greg Mahlich)