The European Investment Bank (EIB) is to provide a €350m loan to TenneT to help finance the 1.4GW NordLink interconnection between Germany and Norway.
The 624km HVDC link will run between Tonstad in Norway and Wilster in the German state of Schleswig-Holstein, enabling the exchange of German wind energy and Norwegian hydropower.
EIB vice president responsible for Germany Ambroise Fayolle said: “Security of electricity supply and effective use of renewable energy will be improved significantly.
“Initially, NordLink will bring surplus hydro generation form Norway to Germany. In the medium term, it will help ease constraints and allow the evacuation of surplus renewable generation from Germany to Scandinavia.”
NordLink is a 50:50 joint venture between Norwegian transmission system operator Statnett and DC Nordseekabel, which is equally owned by TenneT and the German development bank KfW.
DC Nordseekabel is responsible for the construction of the German part of the project, including permits.