Vattenfall has signed a co-operation agreement with four energy companies to plan and build an electrical interconnector between the UK and Norway.
Vattenfall and its partners, Agder Energi, E-CO, Lyse, and Scottish and Southern Energy, agreed to establish Northconnect, a jointly owned interconnector-development company.
‘Northconnect will make an important contribution towards developing the European market for electricity, with increased competition in regional markets, a secure supply of electricity and more stable energy prices for consumers,’ said Harald von Heyden, head of Vattenfall Asset Optimisation and Trading.
After establishing the development company, the project partners will, over the next three to four years, examine the technical and economical viability of developing, building and operating the electricity interconnector.
The HVDC (High Voltage Direct Current) interconnector will have a capacity of between 1,200 and 2,000MW, and it is expected to be operational before 2020.
The interconnector will be a direct link between Vattenfall’s main market, Sweden, and the UK, where the company is expanding its renewable-energy portfolio.
While being a sound business case for the engaged companies, Northconnect enables the realisation and use of the existing low-carbon potential and facilitates the cost-efficient integration of renewable energies into the market.
Vattenfall believes that, by interlinking hydro power with intermittent energy sources such as wind power, Northconnect may contribute to reduce the need for fossil-fuelled electricity generation.