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EIB to finance first-ever energy link between Germany and UK

Oil&Gas Materials 21 July 2022 13:11 (UTC +04:00)
EIB to finance first-ever energy link between Germany and UK
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, July 21. The European Investment Bank (EIB) will finance the first-ever energy link between Germany and the UK, Trend reports via the Bank.

EIB — as part of a consortium of more than 20 international banks — has agreed on the financing structure of the project. The investment to build this interconnector will amount to €2.8 billion, with the EIB set to contribute up to €400 million for the financing of the European part.

The investor consortium is led by French investor Meridiam, Allianz Capital Partners, and Japanese company Kansai Electric Power. Alongside the EIB, other promotional banks include the UK Infrastructure Bank and the Japan Bank for International Cooperation (JBIC).

The project will be the first interconnector between Germany and the United Kingdom, facilitating electricity trade between the European Union and the United Kingdom and contributing to the integration of high shares of intermittent renewables across the North Sea. The expected start date of commercial operations is in 2028.

The project consists of a high-voltage direct current link interconnecting England and Germany through German, Dutch and British waters. The project will have a rated capacity of 1 400 MW and DC voltage of 525 kV. The predominantly subsea cable will have a route length of 725 km and will connect a converter station and German grid interface to Tennet’s electricity network near Fedderwarden, and a converter station and grid interface on the Isle of Grain in the United Kingdom to the National Grid ESO network.

The project is an example of mutually beneficial cooperation between the European Union and the United Kingdom, including cross-border environmental benefits.

Siemens has been appointed as the contractor for the converter stations, and Prysmian will manufacture and install the cable. Both can be considered market leaders in these technologies.

The interconnector will help to ensure better utilisation of offshore wind capacities on the coasts according to the respective local wind strength, thereby supporting EU and German renewable energy policies. The project will make it possible to reduce CO2 emissions and will contribute to meeting the European greenhouse gas emission reduction target of at least 55% by 2030.

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