Intelligent CIO Europe Issue 57 - Page 66


EIB provides € 400 million to support energy link connecting Germany and the UK

The European Investment Bank ( EIB ) – as part of a consortium of more than 20 international banks – has agreed on the financing structure of one of the first-ever energy links , connecting Germany and the United Kingdom . 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 2028 .
The project consists of a high-voltage direct current link interconnecting the United Kingdom 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 . It will also connect 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 CO 2 emissions and will contribute to meeting the European greenhouse gas emission reduction target of at least 55 % by 2030 .
The route of the project will be implemented entirely underground and under the sea , meaning that the project does not fall under Annex I or Annex II of the Environmental Impact Assessment ( EIA ) Directive . Environmental impact studies have been carried out and appropriate measures will be taken to avoid , mitigate and compensate for the impacts .
“ This project is ground-breaking for the energy transition as it makes it possible to use offshore wind energy more efficiently ,” said Ambroise Fayolle , Vice President , EIB . “ Crossborder electricity trade can help redirect power to where it is most needed and can contribute to the integration of renewables and the stability of the energy supply .” p
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