The Nordic Investment Bank (NIB) has signed a ten-year loan agreement with Danish transmission system operator (TSO) Energinet to increase the co-financing to construct the Viking Link interconnector between Denmark and the UK.
The DKK 1.5 billion (approximately €201.67 million) loan is expected to enable the more effective utilization of renewable energy, access to sustainable electricity generation, and improve the security of electricity supplies.
This is the second ten-year loan signed with Energinet for the Viking Link project, following the first of DKK 1 billion signed in March 2021 .
“Energinet’s Viking Link improves the security of electricity supplies and strengthens the northern Europe power grid. Our long-term finance provides added value to the Viking Link, contributing to the green shift and optimised power flows between the UK, Denmark and NIB’s other Nordic and Baltic member countries,” said André Küüsvek , NIB president and CEO.
Viking Link will connect the substations of Revsing in southern Jutland in Denmark and Bicker Fen in Lincolnshire, the UK.
The 1.4 GW project is progressing according to plan, with December 2023 as the completion date.
Onshore installation of converters at the stations in Revsing and Bicker Fen are expected to start this summer.
Offshore, nearly 25% of the sea cable, from the UK has been laid out. The first offshore cable from Denmark is expected to be laid out in the spring of 2022.
The total length of the interconnector is approximately 760 kilometers, with 620 kilometers of submarine cable and 65 kilometers and 75 kilometers of onshore cable in the UK and Denmark, respectively.