Dubbed an “invisible energy highway”, the link will facilitate the movement of electricity between two of Europe’s largest energy markets, enabling the exchange of surplus energy from renewable sources such as solar and wind. Once built, this new source of power will support the UK to reach its net zero targets and provide greater energy security for the country, an issue which is the focus of the energy security bill recently introduced into parliament.
The UK Infrastructure Bank will provide the project with £150 million, supporting £1bn of private finance as part of a consortium of lenders. It will invest alongside other financial institutions and international development banks such as the European Investment Bank, who are supporting Germany with their financing.
Once built, the link will become one of the largest “interconnectors” in the world and will have a capacity of 1.4GW. In addition, consumers could benefit from lower energy costs in both the UK and Germany as there will be an increased supply of low-cost renewable electricity.
The Hogan Lovells team advising UKIB was led by London infrastructure and energy partner Andy Gallagher alongside counsel Charles Ford and senior associate Oliver Hamilton. Commenting on the transaction, Andy said: “We are delighted to have supported UKIB on its financing of this landmark project.”
Our Energy practice comprises of more than 150 lawyers across 15 offices throughout EMEA, the Americas and Asia Pacific. In recent years, the team has advised on more than US$250 billion of energy and infrastructure deals. The team has particular expertise in renewables and energy transition, supporting clients as they develop new and innovative solutions and adapt their businesses towards transformation of the global energy sector.
Further information can be found here: UKIB steps up mission to boost energy security by financing first ever UK-Germany energy | UK Infrastructure Bank
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