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RTRS:Germany, Norway to spend up to 2 bln euro on subsea cable
 
Dec 4 (Reuters) - Norway and Germany plan to spend between 1.5-2 billion euros ($2-$2.6 billion) on a subsea cable that marks the first power link between the two countries.

The framework agreement between Norwegian transmission system operator Statnett, German system operator TenneT and German state-controlled bank KfW follows a plan announced in June for power cables from Norway to Britain and Germany.

"The North Sea cable will improve national energy security in cold and dry winters and help stabilise energy prices over the course of the year," Stattnet Chief Executive Auke Lont said in a statement.

A final investment decision will be taken in 2014, with the aim of bringing the cable into operation at the end of 2018, the companies said in a statement on Tuesday.

The project will take the form of a 50:50 joint venture between Norway and Germany.

The cable will transport surplus wind and solar power from Germany to Norway. When there is little wind and sunshine, the cable will bring power generated from hydroelectric sources from Norway to Germany. ($1 = 0.7650 euros) (Reporting by Ludwig Burger and Victoria Bryan; Editing by Alison Birrane)
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