The Norwegian power grid operator Statnett, KfW and TenneT TSO, transmission system operator for the German North Sea region, have concluded a cooperation agreement to develop and construct a subsea cable between Germany and Norway. The high voltage direct current interconnector will have a capacity of 1,400 MW and will improve the distribution of in particular renewable energy sources, between the two nations.
The interconnector project comprises an investment volume of approximately €1.5-2bn. The three-party agreement provides for a 50:50 partnership between Norway and Germany. Norway's state-owned Statnett will own 50% of the project. On the German side, KfW and TenneT will jointly own 50% of the project via a newly established project company. The target is to commence operation of the cable late 2018. The agreement is based on the agreement reached in June between Norway and Germany. The agreement comprises provisions on the further development and implementation of the project; these will result in a final investment decision in 2014.