Case Study: First direct power link between Germany and Great Britain

As a project financed electricity interconnector, the NeuConnect is the first of its kind and will help to optimise usage of offshore wind assets in Germany and Great Britain. Ultimately, it will contribute to the goals of expanding renewable energy and decarbonising the EU and UK economies.

CMS has acted as project counsel since 2017 and was able to draw on its extensive PPP and project financing knowledge to create innovative solutions for the project, such as incorporating a multijurisdictional structure for a project that passes through UK, Dutch and German waters.

CMS activities included drafting, negotiating and concluding the construction, O&M services, interface and construction management arrangements and associated documentation and supporting the procurement process for the converter stations and cables. CMS advised on the electricity transmission system connection arrangements with National Grid Electricity System Operator. It helped acquire land rights for the converter stations and cabling.

CMS also advised on the project company joint venture and corporate structuring arrangements and providing due diligence reporting to lenders and extensive support to lenders’ advisers.

NeuConnect reached financial close in July 2022 for GBP 2.4 billion (EUR 2.8 billion) with a consortium of over 20 national and international banks and financial institutions.

The project was named Power Deal of the Year 2022 by Project Finance International, which described it as “…the largest privately financed interconnector [that will] support the energy transition by enabling carbon emission reductions, increase competition among generators, and strengthen security of supply across the two countries”.