The Nordic Investment Bank (NIB) has agreed a €134.4M (DKK 1 billion) 10-year loan with Danish TSO Energinet to co-finance construction of Viking Link, the interconnector planned to link GB and Denmark.

The 1.4GW HVDC electricity interconnector will pass 760km between  substations at Revsing, in southern Jutland, Denmark, and Bicker Fen in Lincolnshire, Great Britain.

The plan is to install land and submarine cables with a projected capacity of 2×700MW between 2020 and 2023. The total project cost for Denmark’s part of the project is estimated to be €833M (DKK6.2B).

Henrik Normann, NIB president & chief executive, said, “The main reason for strengthening this section of the northern Europe power grid is to accommodate for optimal power flows between the UK, Denmark, the Netherlands and Germany,” said

Torben Thyregod, Energinet CFO, said, “we are pleased that NIB is participating as an important financial partner in Energinet’s largest capital investment to date.”

Energinet operates, maintains and develops the transmission systems for electricity and natural gas supply in Denmark. NIB is an international financial institution owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries.