Green light for NordLink cable

NordLink is considered a milestone project enabling energy transition as it will:-

1.        be a direct connection between the German and Norwegian electricity markets
2.        increase security of supply, create more stable energy prices and will further the integration of the European electricity market

Storage of wind energy

Connecting Norwegian hydropower to German wind energy will benefit both countries. If a surplus of renewable energy is produced in Germany, this can be transmitted to Germany via NordLink. The water reservoirs in Norway will then function as natural storage capacity for wind energy by retaining the water in the reservoirs. Likewise, Germany can import the cheaper, renewable Norwegian hydropower when demand is high. The NorNed cable between the Netherlands and Norway, which has been operational since 2008, works in the same way.

Benefits for consumers and society

An important part of the socio-economic benefit of the NordLink cable is generated by revenues from the tradable transmission capacity of the cable. These revenues are used to finance other grid projects or to lower tariffs. German consumers can benefit from lower energy prices: if the prices in Germany are high because solar panels and wind turbines produce little electricity, cheaper hydropower can be imported from Norway via NordLink. In Norway, a beneficial socio-economic effect will occur in periods of heavy rainfall, as this will result in an overproduction of electricity from hydropower plants, which Norway can sell. In dry periods, Norwegian consumers will benefit from lower energy prices thanks to the import of cheaper wind energy from Germany.