The chances of the proposed “Viking cable” sub-sea power interconnector between Germany and Norway being built now look slim with E.ON’s decision to pull out of the project. Norway’s state grid Statnett, which had been co-developing the project with E.ON, issued a statement regretting the fact that it had not been possible to pursue the project.
The link between Germany and Norway would have carried 600 MW giving the Nordic region a valuable alternative sources of power and reduced its dependence on hydropower.
Statnett said that E.ON Energie had decided to terminate the project due to legal difficulties in stretching the cable across the Wattenmeer area and the development of prioritised windpower in northern Germany. The cost was estimated at 4bn Norwegian Crowns ($450m) with the cable due to come on line in 2005.
“Such a connection would in Statnett’s opinion have been of great value both for the Norwegian and the Nordic power market, (and) ensure the power balance in dry years,” Statnett added.
The project had been in jeopardy since E.ON and Statnett decided to terminate a power exchange agreement related to the Viking cable in October. The two companies decided to continue talks about the project independently of the power exchange agreement.