Subscriber Login

Deal Watch

Denmark’s TSO secures EUR134 million loan from NIB for Viking Link [free access]

March 22, 2021

The Nordic Investment Bank (NIB) has awarded a 10-year EUR134 million loan to the Danish power transmission system operator (TSO) Energinet to finance the construction of the Viking Link, a proposed 1.4 GW high voltage direct current (HVDC) electricity interconnection between Denmark and the UK.

 

Energinet is developing the project with its UK TSO counterpart, National Grid’s subsidiary National Grid Viking Link Limited (NGVL).

 

The project will enhance the cross-border transmission capacity between both countries, thereby facilitating the incorporation of more renewable energy. This is a long-term project and is under consideration as per the European Network of Transmission System Operators for Electricity’s (ENTSO-E) ten-year network development plan (TYNDP). 

 

The 740-km-link will connect Revsing in South Jutland, Denmark and Bicker Fen in Lincolnshire, UK. Munck Supply Lines, a product of Denmark-based civil engineering firm The Munck Group, will begin installing the land cable in the late summer of 2021, from the beach at Houstrup to the converter station, where the cable will be connected to the Danish electricity grid.

 

The Danish supplier of power cable solutions, NKT Cables, will manufacture and deliver the onshore cables to be installed in Denmark. The Prysmian Group is entirely responsible for providing the 1,250-km cable for the link project’s submarine route, as well as approximately 135 km of land cables on the UK side.

 

Onshore construction works on the project in the UK were initiated in June 2020. The laying of the submarine cable began in the spring of 2021. The 1,400 MW interconnector will go into operation at the end of 2023.

 

The interconnector is listed as a Project of Common Interest (PCI), as it supports the European Union’s (EU) efforts towards developing a common European electricity market.

 

(EUR1=USD1.20)