The NSN electricity interconnector between UK and Norway was on the agenda during the meeting between Norway's Prime Minister Erna Solberg and British Prime Minister David Cameron on Wednesday 15 January.
National Grid and Statnett have been developing what would be the world’s longest interconnector for the past 5 years and in yesterday’s meeting the two ministers also covered questions around the framework for the interconnector.
- This confirms that our project is important for the two countries. Interconnectors will play an important role in a future European energy system, and the project will provide benefits for both countries, such as security of supply, increased sharing of renewable energy and more efficient trading of electricity"said project director in Statnett, Thor Anders Nummedal.
In 2013 the companies reached a partnership agreement and got a renewed technical license from Norwegian authorities. The project has also applied for interconnector license in Norway, and work has continued in the UK on finding a site for a landing point and convertor station at Blyth in Northumberland. An invitation to tender for the cable manufacture and laying has also been issued.
- We reached several important milestones in 2013, and we are ready to continue in 2014. Now we need to make sure UK authorities deliver a supportive regulatory framework and an acceptable market design", said Nummedal.
One of the issues for the project is to be part of the planned capacity mechanism in UK, which is important for the project's profitability.
- With a solution to these issues in place we expect to take a final investment decision in 2014 to allow start of operation for the interconnector in 2020 as planned.
The 1400 MW NSN interconnector project comprises an investment volume of approximately EUR 1.5 - 2 billion. The cooperation agreement for NSN provides for a 50:50 partnership between Statnett and National Grid.
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