Landsvirkjun examines the export of renewable energy via sub-sea cable to Europe
A pre-feasibility study on a submarine cable to connect the Icelandic power system to the UK or Continent Europe is being conducted by Landsvirkjun.
An interconnector would not only enable sales of electricity generated by renewable energy resources, geothermal and hydropower sources, it would have various other benefits for the electricity system in Iceland, such as enhance the security of supply, enable more efficient use of generation capacity and facilitate a market for electricity in Iceland.
The study started in mid 2010 and will end towards the end of 2011. The study evaluates the feasibility of laying the world's longest submarine HVDC power cable and addresses potential business models, markets and congestion management.Three scenarios are being studied. Firstly an interconnector that would be used for export/import based on market prices, secondly a cable used for export only and thirdly an interconnector partly used for export/import and partly for export.
The shortest possible distance of a cable from Iceland to a landing site in Europe is about 1,000 km, almost double the length of the NorNed interconnector (Norway-Netherlands), and the maximum debt would be about 1,000 m. A cable to the continent would be around 1,900 km. The transmission capacity would probably be between 600 and 1,000 MW.
An interconnector between Iceland and neighbouring countries has been discussed for decades. Various studies have been conducted, all with the conclusion that such a project is technically viable but not economically. A desk-top study conducted together with the Icelandic TSO, Landsnet, completed in 2010 indicated that this might have changed and an interconnector might be economically viable. The main rationale behind this change are higher electricity prices in Europe and increased demand for renewable energy with no or low emission of greenhouse gases
It is estimated that it will take further four to five years to study the feasibility and technical and economical aspects of building such an interconnector. If and when a decision has been taken, further four to five years are needed for production and installation of the cable, construction of converter stations and other related tasks. The project could thus commence operation around 2020 at the earliest.
Possible routes of the submarine cable