Germany starts construction on 1.4-GW NeuConnect power cable to UK

Construction on the German side of the 1.4-GW NeuConnect interconnector, the first power cable between the UK and Germany, has started, the German energy ministry said May 21 in a statement.

The Eur2.8 billion ($3 billion) project is set for a 2028 start "delivering green electricity to Germany," it said.

"The climate-neutral electricity system needs flexibility. That's why we're not only expanding the power grids in Germany, but also providing power lines to our neighbors," Energy Minister Robert Habeck said in the statement after a ground-breaking ceremony at Wilhelmshaven with UK Trade Minister Greg Hands.

This close cooperation between Germany and the UK "bodes well for further cooperation projects," Habeck added.

On the UK side, contractors Siemens Energy and Prysmian started works last summer with some 725 km of land and subsea cables set to link the Isle of Grain in Kent to Wilhelmshaven, helping to integrate renewable energy sources in both countries.

The merchant project, the single-largest Anglo-German infrastructure investment, is developed by global investors Meridiam, Allianz Capital Partners, Kansai Electric Power and Tepco.

Analysts at S&P Global Commodity Insights forecast German power prices at a premium to Great Britain over coming years with a report dated May 20 pegging Germany at Eur56.50/MWh for 2030 and Great Britain at a Eur50.20/MWh equivalent (in real 2022 prices).

Platts, part of Commodity Insights, assessed UK power for 2025 delivery at a Eur93.74/MWh equivalent on May 20, on par with Germany's Cal 2025.