Viking Link, a joint venture between National Grid Ventures and the Danish TSO Energinet, is overseeing construction of the high-voltage direct-current (HVDC) power cable, connecting from Bicker Fen in Lincolnshire, UK and Revsing in South Jutland.
Mike Elmer, Viking Link project director for National Grid Ventures said initial groundwork, surveys and water work studies have been completed, so the construction start is “key milestone for the project.”
“Viking Link will play a vital role in helping to decarbonise the UK’s power supply on the journey to a net zero carbon energy system. It will enable access to a cleaner greener supply of electricity, which will make energy more secure and affordable for consumers,” he said.
For starters, Siemens needs to build a new access road to the site of the converter station. The permanent road will take nine months to complete and allow for equipment to be transported and installed at the converter station which is due completed in 2023.
Once the entire 1.4 GW Viking Link is completed by the end of 2023, the €2 billion subsea electricity cable will have the capacity of supplying enough renewable energy to power one and a half million UK homes. National Grid’s aim is to import 90 percent of its electricity from zero carbon source by 2030.
Viking Linked backed by $743 million loan
To finance the interconnector, National Grid in June secured the first multi export credit agency (ECA) covered loan for the Viking Link. The $743 million financing package is made up of $488 million from SACE Export Credit and $255 million from Euler Hermes.
BNP Paribas acted as the structuring bank, bookrunner, mandated lead arranger (MLA) and lender for both credit facilities. Euler Hermes was joined by HSBC Bank as bookrunner for the agent of the SACE export credit and by and by Natwest as bookrunner and MLA for the Euler Hermes export credit.
Britain’s 6th interconnector to Europe
For Britain, Viking Link will be the sixth interconnector to Europe. National Grid already has three operational interconnectors to France (IFA), the Netherlands (BritNed) and Belgium (Nemo Link). Two further projects are under construction to France (IFA2, operational 2020) and Norway (North Sea Link, operational 2021).
Following the completion of Viking Link, National Grid will have 7.8 GW of interconnector capacity – enough to power 8 million homes. The TSO aspires to source 90% of its electricity imports from ‘zero carbon sources’ by 2030.
“Britain’s energy system is in the midst of a rapid and complex transformation. We know we have a critical role in the acceleration towards a cleaner future,” Katerina Tsirimpa, Head of Corporate Finance for National Grid commented. “This green loan represents an important contribution towards our net zero commitment.”