A consortium of some 20 banks including the European Investment Bank (EIB), the UK Infrastructure Bank, and the Japan Bank for International Cooperation (JBIC), have agreed on the financing structure of the first ever energy link connecting Germany and the UK.
The €2.8bn (£2.3bn) NeuConnect project will be one of the largest interconnectors in the world, measuring 725km in length.
The project consists of a high-voltage direct current link interconnecting England and Germany through German, Dutch and British waters. It will have a rated capacity of 1 400MW and DC voltage of 525 kV.
NeuConnect aims to facilitate electricity trade between the European Union and the UK and contribute to the integration of high shares of intermittent renewables across the North Sea.
Construction is expected to start this year, with commercial operations scheduled for 2028.
NeuConnect recently awarded several key contracts related to the project, including £1.5bn worth of contracts given to Prysmian Group and Siemens Energy for cabling works and converter stations.
Ambroise Fayolle, EIB vice president, commented: “This project is ground-breaking for the energy transition, as it makes it possible to use offshore wind energy more efficiently.
“Cross-border electricity trade can help redirect power to where it is most needed and can thus contribute to the integration of renewables and the stability of the energy supply.”
The investor consortium is led by French investor Meridiam, Allianz Capital Partners, and Japanese company Kansai Electric Power.
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