18 Mar 2021
NIB finances power interconnector between Denmark and Great Britain
NIB signs a 10-year loan agreement with Danish TSO Energinet to co-finance the construction of the Viking Link, a 760- kilometre 1.4 GW high voltage direct current electricity interconnector between the substations of Revsing in southern Jutland, Denmark, and Bicker Fen in Lincolnshire, Great Britain.
The DKK 1 billion (EUR 134.4 million) loan will enable the more effective utilisation of renewable energy, access to sustainable electricity generation, and improve the security of electricity supplies.
The plan is to install land and submarine cables with a projected capacity of 2 × 700 MW between 2020 and 2023. A full commissioning of the interconnector is expected in December 2023. The total project cost for Denmark’s part of the project is estimated to be DKK 6.2 billion.
Given the location and time difference between the two price areas, the interconnection will allow benefits to be drawn from various generation conditions, the time difference and the associated consumption peaks, as well as to share renewable energy between both countries and beyond.
“The main reason for strengthening this section of the northern Europe power grid is to accommodate for optimal power flows between the UK, Denmark, the Netherlands and Germany,” says Henrik Normann, NIB President & CEO.
“Energinet works for a green transformation of the energy systems, so that citizens and companies can use renewable energy for everything, with a high security of supply and at a price that can be paid. In this connection, Viking Link is an important component which ensures efficient utilisation of renewable energy and generally increases security of supply in Denmark. At Energinet, we are pleased that NIB is participating as an important financial partner in Energinet’s largest capital investment to date,” says CFO Torben Thyregod.
Energinet operates, maintains and develops the transmission systems for electricity and natural gas supply in Denmark. The transmission system operator (TSO) was founded in 2005 by the Danish Ministry of Climate, Energy and Utilities.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
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