The aim of purchasing the reserve cable is to strengthen the security of electricity supply in East Norway and to ensure sufficient capacity in the transmission grid.

 

The reserve cable will come into play for power transmission should a fault arise on any of the existing cables. The reconnection period will be about 4-8 weeks. When operational, the new cable will provide approximately 750 MW more capacity across the Oslo fjord than without this reserve. The 2008 fault incidents showed that it takes a long time to repair faults on subsea cables; there is consequently a need to strengthen our preparedness for similar incidents.

 

Cable fault gave rise to lower electricity prices in the spring of 2008
High reservoir levels in early 2008, together with cable faults on the transmission links out of South Norway, resulted in low electricity prices last spring to consumers in South Norway. Prices bottomed out in the first half of May, with less than 8 øre for one kilowatt-hour of electricity traded on Nord Pool, the Nordic power exchange. In the same period, prices in Central and North Norway were between 20 and 30 øre, i.e. 2.5 to 4 times higher.

The biggest difference of all was in the first week of June, when the average price for one kilowatt-hour was 10.2 øre in South Norway and 47.5 øre in the rest of the country and Sweden. Since then, increased transmission capacity out of the region has gradually helped normalise the prices in South Norway. 

No consumers were left without power as a result of the fault incidents in 2008.

 

Focus on rapid progress
Statnett is making every effort to hasten the ordering of a new reserve power cable. The ambition is to lay the cable on the east side of Bastøy, where the existing cables have weaker transmission capacity than desired. The project will have rapid completion as its highest priority. The final date for bringing the cable into operation will depend on the delivery capacity of the cable manufacturers.

 

The two other subsea cable links across the Oslo fjord, Sylling-Tegneby and Flesaker-Tegneby, are already supported by a reserve cable.

 

There is little likelihood that a fault on an existing main cable, with subsequent reconnection period, will affect the power supply to the East Norway region.

 

Please direct any questions concerning the above to:
Rune Gutteberg Hansen, Vice President Corporate Communications, Tel. +47 22 52 70 00/913 79 539.