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Norway Approves Construction of Longest Undersea Power Cable

Information Source:Henan Huadong Cable Co., Ltd  Release date:2014-10-18

Norway authorized the construction of the world’s longest undersea power cable, connecting the nation to the U.K., and a link to Germany.

Licenses were awarded to Statnett SF, the operator of Norway’s electricity grid, the nation’s Ministry of Petroleum and Energy said today on its website. The cable to the U.K. will be about 740 kilometers (460 miles) long, British network operator National Grid Plc said in a statement. Each link will have a capacity of 1,400 megawatts, enabling exports of more than 12 terawatt-hours of power a year.

The U.K. connection will probably raise Nordic power prices by 1.50 euros ($1.90) to 2 euros a megawatt-hour as higher British prices lead to annual net Norwegian exports of 10 terawatt-hours, Olav Botnen, senior analyst at Markedskraft AS, said by phone from Arendal, Norway. The German cable will have less impact because power prices in the nation and Norway are expected to be similar after 2018, he said.

“It will be hard to find profitability for the German cable in the spot-market only, due to low price differences in the future,” Botnen said. “But system services and capacity auctions on top will contribute to improve profitability.”

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