Decision on the new sea cable between Finland and Sweden

Fenno-Skan 2 will respond to the market needs. Fingrid Oyj and Svenska Kraftnät, the transmission system operators in Finland and Sweden respectively, have decided to construct a new cross-border transmission connection between the countries. The sea cable of 600 – 800 MW is due to be ready in the autumn of 2010. The companies will share the ownership and investment of the sea cable, totalling about 200 million euros, in equal proportions.
Fenno-Skan 2 will respond to the market needs. The connection strengthens transmission interconnections between Finland and Sweden, and integrates the electricity markets in the Nordic area even closer. As a result of the investment, there will be less temporary electricity price differences between Finland and Sweden, and hedging costs borne by market players will also decrease.

Timo Toivonen, President of Fingrid, says that the new sea cable connection is a concrete sign of the will and ability of TSOs to contribute to the efficient functioning of the Nordic electricity market.

The new Fenno-Skan 2 sea cable connection is the first concrete investment decision in the implementation of the shared development plan of the Nordic transmission system operators (TSOs). This project is also one of the five new transmission interconnections proposed by Nordel, the co-operation organisation of the Nordic TSOs.

The five transmission interconnections suggested by Nordel will improve the functioning of the electricity market. The total value of all investments proposed is approx. 1,000 million euros, and they are to be ready around 2010.

According to Jan Magnusson, Director General of Svenska Kraftnät and Chairman of Nordel, the proposal concerning the five new cross-border transmission connections is one of the most important steps in the development of the Nordic main grids. Jan Magnusson states that co-operation of this kind is unique in the whole world.

Fenno-Skan 2 will be carried out as a direct current connection with a total length of almost 300 kilometres. Power converter stations will be built at each end of the connection. In Finland, the new cable will be connected to the main grid at the Rauma substation. In Sweden the cable will be connected to the main grid at the Finnböle substation located north of Stockholm.

The actual construction work will commence once the license process is complete. The project will be subject to international competitive bidding.
Further information:
Fingrid Oyj, Timo Toivonen, President, tel. + 358 (0)30 395 5250, +358 40 560 5250
Svenska Kraftnät, Jan Magnusson, Director General, tel. +46 8 739 7803