According to Bloomberg News, the Norwegian authorities have formally approved the construction of a submarine power cable connecting the UK, which is currently the world's longest submarine power cable.
The Norwegian Ministry of Petroleum and Energy announced on Monday that the construction permit for the submarine power cable project was issued to the Norwegian State Grid Corporation Statnett SF. The world's longest submarine power cable has a total length of 740 kilometers, a transmission capacity of 1,400 MW, and an annual export volume of more than 12 TWh.
market analyst Olav Botnen said that due to the very high electricity prices in the UK, the construction of this submarine power cable can prompt Norway to achieve a net electricity export of 10 TWh per year. This has also promoted the growth of electricity prices in the North Sea region, which is expected to increase from 1.5 euros per MWh to 2 euros per MWh.
In addition, this submarine power cable will also have a branch line connecting Germany. But this has little effect on German electricity prices. Because the country's own electricity prices are relatively low.
Botnen also believes, “Since the price of electricity between Norway and Germany is not much different, the construction of branch lines connecting the German grid will not cause too much fluctuations in electricity prices. But it is beneficial to grid system services and power supply security. ."
After the Norwegian authorities approved the world’s longest submarine power cable project, EU Energy Minister Guenther Oettinger issued a statement saying, “The EU welcomes this decision by Norway. The construction of the submarine power cable project will promote the availability of the Northwestern EU. The integration of renewable energy will promote the development of the European energy market and further ensure the safety of power supply."