Light at the end of the cable: Spain and France finally agree to finance a submarine electrical link

SPAIN and France are ready to settle their longstanding dispute over the cost of their first submarine electrical link.

The 400 km long cable link from the north coast of Spain to the west coast of France was designed to double the existing transmission capacity between the countries and allow Spain to pour its abundant renewable energy into a wider European grid.

Since the project was initially announced in 2017, the estimated cost has nearly doubled to €3.2 billion due to unforeseen instability of the seabed on the French side and rising raw material costs.

Spain is a growing producer of renewable energy and wants France to pay most of the extra costs, leading to disagreements and tensions between the two countries over pipeline connections and protectionism.

The Spanish Minister of Energy, Teresa Ribera, has confirmed that she expects a final agreement this week without giving further details.

Two sources familiar with the matter said France’s Energy Regulatory Commission and Spain’s competition watchdog CNMC should give the go-ahead on Thursday or Friday for the project, whose budget has been increased.

Spain’s CNMC only said that negotiations were ongoing.

The likely cost-sharing deal is part of a political discussion of contentious issues, including France’s campaign to have nuclear hydrogen considered a renewable source, which Spain opposes.

The interconnection, to be built by RTE of France and REE of Spain, is likely to suffer delays but would allow the two countries to double their electricity exchange capacity to 5,000 MW, enough to power 5 million homes.

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