The NordLink subsea cable connects the Norwegian and German electricity markets for the first time, and became operational in march 2021.
There have been a significant increase in wind power and solar power in Germany. When there is a surplus of energy in Germany, and lower prices than in Norway, Norway can then import power and conserve the water in Norway's many hydropower reservoirs.
When there is little production of wind power and solar power in Germany prices will often be higher than in Norway. Norway can then produce hydropower and export it to Germany. This way we get more out of the resources on both sides of the cable.
The advantages of this exchange of energy include:
- Increased security of supply because one can import more electricity at a lower price when the power situation is tight
- Increased market for power producers when there is a surplus of power in the national markets
- Facilitation of higher production and consumption of renewable energy in Norway and Germany, thereby contributing to increased renewable energy production
- More predictable supply situation throughout the year and from year to year