OREANDA-NEWS. National Grid and Statnett, the Norwegian transmission system operator, have signed a co-operation agreement to continue work on the interconnector to link the two countries.

The NSN interconnector will have a capacity of 1400 MW and will be the first electricity link between UK and Norway. The link will contribute to further integration of the North-European power markets and strengthen the North-European power grid. It will support production and consumption of renewable energy and help towards achieving EU 2020 renewable goals.

The interconnector will also contribute to increased reliability and security of supply in both countries. It is a cornerstone in the network development plans for the countries surrounding the North Sea basin, and of high priority to the companies.

Steve Holliday, National Grid’s Chief Executive said

"This is another important stage in the development of what will be the world’s longest subsea interconnector. Joining of the energy systems of both countries will bring much wider benefits – delivering secure and affordable power to consumers as Europe moves towards integrating its renewable energy".

Auke Lont., Statnett Chief Executive said

"This agreement is important for us to take the project further. We are now ready to submit the interconnector licence application to the Norwegian Ministry of Petroleum and Energy. Together these events represent a key milestone for the project".

The interconnector project would be an investment of approximately EUR 1.5 - 2 billion and the cooperation agreement provides for a 50:50 partnership between National Grid and Statnett.

The NSN project will now focus on obtaining the necessary regulatory and environmental agreements and concessions as well as preparing for the procurement of cable and two converter stations. If the project reaches an investment decision as planned in 2014, the interconnector is expected to be complete in 2019/2020.