Statnett and their partners are investigating the possibility of including fiber optic cables during the installation of power cables to Germany and the UK. However, the project owners have decided not to finance the installation of fiber cables themselves. If the fiber cables are not installed, they will, as a point of departure, use other communication solutions to operate the power cables.

Statnett recently presented a report prepared by Nexia, which concluded that it would be both technically challenging and unprofitable for Statnett and their partners to install fiber cables at the same time as the planned power cables to Germany and the UK.

Statnett has now hired Pareto Securities to identify whether there could be market interest for third-party financing of a fiber project, including investments, operating expenses and risk coverage. A clear and commited interest is a requirement for any further work on a potential fiber project. The initial phases of the process will start in November. A final decision regarding fiber cables will be based on further negotiations and be made by all parties involved, including partners in the interconnector projects. Approval from the relevant authorities is required.

NordLink
NordLink is owned 50 per cent by Statnett and 50 per cent by the German system operator TenneT and the German investment bank KfW. The international interconnector will have a capacity of 1 400 MW and will run between Tonstad in Norway and Wilster in Schleswig-Holstein in Germany. The cable will be completed in 2019, with commercial operations starting in 2020. Total investment costs for the project will be EUR 1.5 - 2 billion.

North Sea Link
North Sea Link is owned by Statnett and the British grid owner National Grid, both with an ownership interest of 50 per cent. The international interconnector will have a capacity of 1 400 MW and will run between Kvilldal in Rogaland and Blyth in the UK. The cable is scheduled to come online in 2021. Total investment costs for the project will be EUR 1.5 - 2 billion. 

The two new international interconnectors promote sound climate solutions by facilitating for production and use of renewable energy on both sides, whilst at the same time strengthening security of supply and promoting value creation.

Media contact:
Christer Gilje, Vice President Corporate Communications Statnett, mobile: + 47 95 23 71 28, christer.gilje@statnett.no

Contacts in Pareto Securities:

Yngve Walle

 Lars F. Revling

 Lars Ove Skorpen

Partner, Corporate Finance

 Partner, Corporate Finance

 Partner, Corporate Finance

+(47) 91 78 65 44

 +(47) 41 22 27 72

 +(47) 91 32 31 15

yw@paretosec.com

 lars.revling@paretosec.com

 los@paretosec.com