Germany and Norway have signed a contract for a high-voltage undersea cable aimed at exchanging surplus renewable energy. The project is essential for Germany's plan to phase out nuclear power by 2022.
Construction of the North Sea underwater cable would cost between 1.5 billion and 2 billion euros ($2-2.6 billion), and is expected to be finished by 2018, Germany's state-owned KfW development bank announced Tuesday.
Alongside KfW, the joint venture includes the Norwegian power-grid operator Statnett and the Dutch grid operator TenneT, which owns large parts of the German electricity distribution network. The new consortium will be half owned by Norway and half by the German parties to the deal.