The EUR 2.8 billion NeuConnect project, which connects the UK and Germany's energy grids, reached financial close today.

Information on the Target

The NeuConnect project aims to establish a vital new energy link between Germany and the UK, facilitating the first direct connection of their respective power grids. With a projected investment of EUR 2.8 billion (approximately USD 2.95 billion), this interconnector will span an impressive 725 kilometers, effectively functioning as an 'invisible energy highway.' This initiative is designed to enable the exchange of up to 1.4 GW of electricity, enough to power around 1.5 million homes.

With the goal of enhancing energy resilience, security of supply, and supporting the transition to renewable energy sources, NeuConnect is poised to significantly contribute to carbon emission reductions, estimated at over 13 million tons of CO2 over the next 25 years. The project will feature the construction of two substations, located in Wilhelmshaven, Germany, and the Isle of Grain, England, and is slated to begin construction in 2023.

Industry Overview in the Target’s Specific Country

Germany has been at the forefront of the renewable energy transition, implementing robust policies to integrate wind, solar, and other renewable energy sources into its power grid. As one of Europe's largest economies, its energy landscape has been characterized by significant grow