The European Investment Bank (EIB) is lending €300 million (£261m) for an interconnector between Germany and Norway.

Norwegian transmission system operator (TSO) Statnett will use the money for the completion of the Nordlink project, which will have a capacity of 1,400MW.

The agreement comes shortly after the first part of financing for the interconnector was signed with TSO TenneT for the German side of the project.

Andrew McDowell, EIB Vice President responsible for energy said: “The security of supply and effective use of renewable energy remain high on the agenda for EIB financing.

“Germany has long regarded the sustainability of the energy it uses as very important and the interconnector will allow it to import Norwegian hydro energy when needed, while also allowing exportation of its own surplus renewable generation towards Scandinavia.”