National Grid PLC Agreement with Statnett on new Interconnector (5424I)
March 26 2015 - 6:32AM
UK Regulatory
TIDMNG.
RNS Number : 5424I
National Grid PLC
26 March 2015
26 March 2015
National Grid and Statnett Agree to
Proceed with UK-Norway Interconnector
National Grid announces that it is, today, intending to sign an
ownership agreement with Statnett SF, the operator and main owner
of the Norwegian electricity transmission system, for the proposed
"NSN link" electricity interconnector project.
The 730 km interconnector between the UK and Norway will be the
first electricity link between the two countries, with a planned
capacity of 1,400 MW - enough to meet the needs of around 750,000
homes. The estimated cost of the project is around EUR2bn, with the
investment to be shared between National Grid and Statnett.
Contracts to build the NSN Link are expected to be awarded
during the summer, with the construction phase to begin in 2015.
National Grid expects the link to be operational early in the next
decade.
National Grid has made participation in interconnector projects
a strategic priority for the Group. In addition to having the
potential to provide attractive growth, returns and long-term
earnings benefits, interconnectors have the capability to add
significant additional flexibility in managing the GB energy
market. A recent study, supported by National Grid, highlighted
that 4-5GW of additional new interconnector capacity should
materially reduce the wholesale price of electricity in the UK,
providing an annual benefit of around GBP1bn and helping to reduce
consumer bills. Together with the new Nemo Link interconnector to
Belgium, announced in February, the NSN link should add 2.4GW of
capacity when completed.
Steve Holliday, Chief Executive of National Grid, commented:
"Interconnectors have an increasingly important role to play in
supporting security of supply for us and our neighbours in a cost
effective manner and in helping to lower wholesale prices for
consumers. The NSN link will also allow the UK to access low-carbon
energy from Norway's hydro-electric power stations, helping us to
meet the challenge of greener, affordable energy."
CONTACTS
Investors
John Dawson +44 20 7004 3170
Andy Mead +44 20 7004 3166
Media
Chris Mostyn +44 (0)20 7004 3149
Isobel Rowley +44 (0)1926 655275
CAUTIONARY STATEMENT
This announcement contains certain statements that are neither
reported financial results nor other historical information. These
statements are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements include information with respect to National Grid's
financial condition, its results of operations and businesses,
strategy, plans and objectives. Words such as 'anticipates',
'expects', 'should', 'intends', 'plans', 'believes', 'outlook',
'seeks', 'estimates', 'targets', 'may', 'will', 'continue',
'project' and similar expressions, as well as statements in the
future tense, identify forward-looking statements. These
forward-looking statements are not guarantees of National Grid's
future performance and are subject to assumptions, risks and
uncertainties that could cause actual future results to differ
materially from those expressed in or implied by such
forward-looking statements. Many of these assumptions, risks and
uncertainties relate to factors that are beyond National Grid's
ability to control or estimate precisely, such as changes in laws
or regulations, announcements from and decisions by governmental
bodies or regulators (including the timeliness of consents for
construction projects); the timing of construction and delivery by
third parties of new generation projects requiring connection;
breaches of, or changes in, environmental, climate change and
health and safety laws or regulations, including breaches or other
incidents arising from the potentially harmful nature of its
activities; network failure or interruption, the inability to carry
out critical non network operations and damage to infrastructure,
due to adverse weather conditions including the impact of major
storms as well as the results of climate change or due to
unauthorised access to or deliberate breaches of National Grid's IT
systems and supporting technology; performance against regulatory
targets and standards and against National Grid's peers with the
aim of delivering stakeholder expectations regarding costs and
efficiency savings, including those related to investment
programmes and internal transformation projects (including the US
financial system and controls); and customers and counterparties
(including financial institutions) failing to perform their
obligations to the Company. Other factors that could cause actual
results to differ materially from those described in this
announcement include fluctuations in exchange rates, interest rates
and commodity price indices; restrictions and conditions (including
filing requirements) in National Grid's borrowing and debt
arrangements, funding costs and access to financing; regulatory
requirements for the Company to maintain financial resources in
certain parts of its business and restrictions on some
subsidiaries' transactions such as paying dividends, lending or
levying charges; inflation; the delayed timing of recoveries and
payments in National Grid's regulated businesses and whether
aspects of its activities are contestable; the funding requirements
and performance of National Grid's pension schemes and other
post-retirement benefit schemes; the failure to attract, train or
retain employees with the necessary competencies, including
leadership skills, and any significant disputes arising with the
National Grid's employees or the breach of laws or regulations by
its employees; and the failure to respond to market developments
and grow the Company's business to deliver its strategy, as well as
incorrect or unforeseen assumptions or conclusions (including
unanticipated costs and liabilities) relating to business
development activity, including assumptions in connection with
joint ventures. For further details regarding these and other
assumptions, risks and uncertainties that may impact National Grid,
please read the Strategic Report section and the 'Risk factors' on
pages 167 to 169 of National Grid's most recent Annual Report and
Accounts. In addition, new factors emerge from time to time and
National Grid cannot assess the potential impact of any such factor
on its activities or the extent to which any factor, or combination
of factors, may cause actual future results to differ materially
from those contained in any forward-looking statement. Except as
may be required by law or regulation, the Company undertakes no
obligation to update any of its forward-looking statements, which
speak only as of the date of this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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