Participants in the IT industry and municipalities in southern Norway has advocated that Statnett should add fiber to their power cables to Germany and the UK.
Statnett rejected the idea at first, but met opposition, and did so Pareto to create a market test of interest to build the cable.
– Not sufficient interest
In a press release writing now Statnett that there may be sufficient commercial interest to to implement a fiber project, initially to Britain.
A number of stakeholders have claimed Statnett pointed to the technical and commercial risks associated with integrating fiber in the planned foreign cables.
Clarifications with suppliers, according to Statnett also shown that it will result in substantial risk of delay combining laying of fiber with the ongoing power cable projects to Germany and the UK.
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Standalone project
Statnett has therefore, in consultation with its partners, shelved plans for integrated fiber solution . Instead Statnett will go ahead with plans for a standalone fiber project.
– We have always said that adding fiber combined with power cable would be demanding, and we now see that it is not possible without considerable risk for both power cables and an integrated fiber project. This risk we avoid largely in a standalone fiber project. Therefore, we will proceed with fiber, but thus with a new concept, says Executive Vice President Håkon Borgen in the press release.
In September, a report from consulting company Nexia that it would be unprofitable to lay fiber cables with power cords. Statnett now inviting potential investors to dialogue to explore the possibilities for realization of fiber regardless of the power cables.
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Need communication
Head of Communications Christer Gilje in Statentt answer so if it is Statnett’s responsibility to build out fiber cables.
– We see that we have a need for communications on the power cables. If there is a good solution for this, it may be appropriate for us to contribute with an investment equivalent to what other options would cost.
– The share of investment would you contribute?
– It depends on what kind of solution that is topical. But we can make a contribution.
Gilje also show that Statnett now has a good overview of the technical possibilities and the stakeholders that may be relevant to invest.
– Therefore we wanted to tea it further in the way that we collect the interested and discuss the possibility of obtaining raised such a standalone option. It was mostly about getting exploited the momentum we have now from the studies we have done from shore.
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Will look for synergies
– Will fiber and power cables are laid in the same place or in any way make coordinated physically laying?
– What solutions that will now be in question, is very open. We have seen that it is not possible to add fiber and power cable together without the risk was too high. But it would be natural to see if there is knowledge or part of the solutions that can provide some synergies. However, it is not naturally binding to it to be a particular trace or made in a specific way. Now they had to see what is possible to achieve out of the technical assessments made.
– Was it Statnett or actors who rejected a joint laying of a common power and fiber cable?
– We found no commercial interest for a combined project. In addition, we have had a process of cable providers that have shown that the risk of delay is high. They are a combination of what makes that it is not possible to carry out the combined project, from shore.
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– Sad
General Per Morten Hoff In ICT Norway is disappointed.
– This is very sad. We’d spared 200 million kroner to add fiber and cables simultaneously. Then came caseworker Nexia with their response to the task, where Statnett had placed strange assumptions and did not even let Nexia talk with the major cable providers. We’ve talked to players who say it is problematic to lay fiber in such long stretch without bringing power to get light the cable. And technology development is the continuous further. This is a bit odd note, says Hoff.
– If we let the opportunity pass by, it is sin. I think it would have been great savings on collocation. Moreover, we need more highways for data capacity out of Norway that we have control over. Therefore, I believe the government itself should have gone in and made sure it happened. The national interests here, no one attends, says Hoff.
He opens however, that there may be remain hopeful.
– But so far we are very uncertain at the end, says Hoff.
Could risked large losses
Gilje Statnett rejects criticism from ICT Norway.
– The reason that Nexia could not have cable providers in the report was that companies in most of the time they prepared the report was in talks with us about the power cables. To immigrate with possible change of concept so important negotiations on such large projects, was not possible. But after we signed a contract with them for the power cables, we have had discussions with them about what possibilities exist for realizing fiber cable bundled with the power cord. And where it has emerged that the risks are high that it may come delays, from shore.
He points out that the value of the projects is very large. Estimated trading income of cable is over a hundred million per month.
– When one quite close to some of the estimates of savings of adding cables together. In addition, the overall socio-economic benefits. So delays would quickly eat up what you eventually would skimp on samlegging, from shore.
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