EIFO Finances Critical Energy Infrastructure with Danish Cable Technology

The first transmission line connecting the windy northern Germany to industrial centers in the south is being built using high-voltage cables from NKT. Backed by a EUR 475m guarantee from EIFO, the SuedLink will strengthen European energy security, marking power grids as a new business area.

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Photo: NKT

Germany's electricity grid is a vital backbone of Europe's power system, acting as a central hub for cross-border electricity flows and enabling the integration of large volumes of renewable energy, including offshore wind from the North Sea. However, low transmission capacity between northern and southern Germany has long been a bottleneck.

SuedLink will help address this challenge by significantly strengthening Germany's north-south transmission capacity. The project spans approximately 700 kilometres and consists of two parallel HVDC links connecting Schleswig-Holstein with Baden-Württemberg and Bavaria. The section managed by EnBW subsidiary TransnetBW is 450 kilometres long and is being built using high-voltage cables supplied and installed by Danish company NKT.

EIFO's guarantee covers 95% of a EUR 500 million loan facility provided to EnBW by a consortium of international banks comprising Crédit Agricole CIB, HSBC and ING.

The SuedLink will transport massive volumes of low-cost, renewable energy south, primarily from the Baltic and North Sea. This makes SuedLink central to electrification and to building energy security in Europe. Both are key strategic focus areas for EIFO.

This transmission line is critical to both Germany and Europe. Expanding grid capacity strengthens European energy autonomy and supports the transition to an electrified continent. With cables from Danish NKT at the core, this is a natural fit for EIFO. We have financed more than 240 wind projects globally, and our ambition now is to become a key financing partner in the expansion of Europe’s power grid. This agreement shows how we can help drive that development.

Peter Boeskov, CCO of EIFO

The project aligns directly with EIFO’s strategy by combining financing of large-scale international projects with Danish exports and supporting the green transition. The EUR 475m guarantee is EIFO’s largest financing of transmission lines ever and strengthens the company’s position within critical energy infrastructure.

EIFO has a pipeline of other similar projects in Germany, where the interconnections to 11 neighboring countries makes the country Europe’s primary trading hub and energy bridge. Supply balance and grid stability across borders will be key to EU's resilience and continued electrification.

We are seeing an increasing focus on electrification across Europe as a key driver of energy independence through greater use of domestically produced energy. This calls for continued investment in an integrated power grid, where large underground cable connections can connect energy markets. This development is reflected in projects such as the Bornholm Energy Island and the German corridor projects, including TransnetBW’s SuedLink project, which is currently under installation. EIFO’s support supports the expansion of critical energy infrastructure in Europe, contributing to a stable and secure energy supply across the continent.

Michael C. Hjorth, Chief Commercial Officer at NKT

The construction of SuedLink is expected to be completed in 2028 and is being developed by two German TSOs, including TransnetBW, in which EnBW is the majority shareholder.

At EnBW, Marcel Münch, SVP of Finance, M&A, and Investor Relations highlights EIFO’s role as an important financing partner helping to make the project possible.

The €500 million loan represents another key element in EnBW’s long-term financing strategy. In light of the continued high investment needs in grid infrastructure to enable the energy transition, this step allows us to further diversify our financing portfolio and secure attractive long-term conditions.

Marcel Münch, SVP of Finance, M&A, and Investor Relations, EnBW

EIFO’s total business volume in Germany is now EUR 2,88bn, including the SuedLink project. This makes Germany one of EIFO’s biggest markets, alongside the UK. Past commitments in Germany include a EUR 1bn financing for RWE’s offshore wind parks in the North Sea as well as a EUR 100m loan for a strategic lithium production project under the EU’s Critical Raw Materials Act, by Vulcan Energy.

Photo: NKT