The NordLink project has been developed by Statnett in cooperation with grid company TenneT and investment bank KfW in Germany. The subsea cable will connect the Norwegian and German electricity markets for the first time.
There have been a significant increase in wind power and solar power in Germany. When the winds blow and the sun shines this creates a surplus of renewable energy in Germany, which also leads to lower prices than in Norway. Norway can then import this power and conserve the water in Norway's many hydropower reservoirs.
When there is little production of wind power and solar power in Germany the need for power increases and the prices will 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 green 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 future climate-friendly energy
- More predictable supply situation and price throughout the year and from year to year