National Grid secures £580m loan for Viking Link power cable
The National Grid has today secured a $734m (£580m) loan to help build a new €2bn power link between the UK and Denmark.
The Viking Link, which is expected to be completed in 2023, will be able to provide renewable power to 1.4m households.
The 1400 megawatt cable is being developed in a joint venture between National Grid and Danish energy network Energinet.
Running between Bicker Fen in Lincolnshire and South Jutland in Denmark, the 764km interconnecter has been designated one of the European Union’s projects of common interest.
The cable, which will run through British, Dutch, German and Danish waters, will on completion be the largest submarine power cable in the world.
The multi-export credit agency covered loan is made up of $488m from SACE Export Credit and $255m from Euler Hermes Export Credit, National Grid said.
The loan is the first time that multiple credit agencies have come together to finance a green project of this size.
Katerina Tsirimpa, Head of Corporate Finance for National Grid said: “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. This green loan represents another important contribution towards our net zero commitment and it reinforces our strong leadership position in the path to a greener energy landscape”.
Construction work on the project has continued despite the coronavirus pandemic.