Authority: Ofgem · Licence: Post-Construction Review decision — decommissioning cost allowance (Decommex)
Ofgem published its Decision on the Post Construction Review for Viking Link on 11 July 2025 and set the final decommissioning expenditure allowance (Decommex) for the GB share at £49.4 million. The decision determined the Post Construction Adjustment (PCA) terms and confirmed the final cap and floor levels for National Grid Viking Link Limited (NGVL), reflecting Ofgem’s assessment of the project's decommissioning cost forecast at PCR stage. The allowance represents the regulator’s assessed funding for end‑of‑life activities associated with Viking Link’s GB share and forms part of the project’s long‑term financial planning.
£49.4M
Ofgem disallowed £2.0 million claimed by NGVL for payments to keep a repair vessel on standby after commissioning, finding that the assessed risk of immediate cable damage did not justify the standby vessel cost as economic and efficient. NGVL had argued that standby availability reduced the risk and potential consumer impact of a rapid repair requirement; Ofgem concluded the cost level did not meet the threshold for inclusion in allowed post‑construction costs.
Following commercial start-up, National Grid and Energinet planned to progressively bring Viking Link up to its full rated capacity (1.4 GW) over the coming year (2024). This programme consisted of staged operational ramping, performance verification and optimisation activities to increase transfer capability from initial operating limits to the target capacity.
Following damage to a section of cable at the UK landfall during installation, National Grid Viking Link sought an extension of the warranty coverage for that cable section to manage an increased risk of fault. Ofgem reviewed the extension during the Post‑Construction Review and concluded the additional warranty coverage costs were not recoverable from consumers because liability to the contractor was not sufficiently demonstrated; Ofgem therefore disallowed the additional coverage cost. The extension related specifically to the landfall cable section and arose from installation damage identified after commissioning.
On 29 December 2023 National Grid and Energinet energised the Viking Link interconnector, initiating the first transfer of electricity between the Bicker Fen converter station in Lincolnshire, UK and the Revsing converter station in southern Jutland, Denmark. The energisation followed completion of converter and cable commissioning (Siemens Energy supplied and commissioned converters; Prysmian supplied and laid the HVDC cable) and enabled the first operational flows along the 765 km HVDC route.
On 29 December 2023 Viking Link commenced commercial operation (COD). National Grid Ventures and Energinet announced that the interconnector had started commercial electricity trading between the UK and Denmark after construction and commissioning were completed, with initial commercial availability allowing power flows under operating arrangements between the two system operators.
Viking Link has been operated at reduced capacity since it entered commercial operation on 29 December 2023 because the western Danish onshore grid was not sufficiently reinforced. The constraint is driven by limited capacity in the internal western Danish transmission network; full 1.4 GW commercial capability was withheld pending completion of the required local grid reinforcements. The restriction on throughput was recorded by system planners and public authorities and remains in place until the Danish grid works are completed.
A Site Acceptance Test (SAT) campaign for equipment at the Revsing (Denmark) converter/substation took place from 26–28 September 2023. The SAT included asset handover activities, fingerprinting of cable terminations, connection verification, and hands‑on training for the Energinet team; Megger and partner teams documented HV bridge measurements and TDR fingerprinting as part of the acceptance scope.
Prysmian announced completion of installation and high-voltage (HV) testing of its submarine and land cable works for Viking Link in September 2023. The announcement reported successful completion of cable laying, burial and HV testing activities across the submarine and onshore sections ahead of project commissioning.
Factory Acceptance Tests (FAT) for project-specific fault‑location and HV test equipment were carried out at Megger’s Radeburg factory from 24–28 July 2023. Delegations from National Grid and Energinet participated to verify that the delivered systems met the Viking Link tender specification, exercise operating modes and confirm functionality ahead of site deployment.
| United Kingdom | Denmark | |
|---|---|---|
| Landfall | Boygrift (adjacent to Sandilands Golf Club), East Lindsey, Lincolnshire, GB | Houstrup Strand (Houstrup Beach), Denmark |
| Grid Connection | Bicker Fen substation (Lincolnshire, Great Britain) | Revsing substation (Revsing, Southern Jutland, Denmark) |
United Kingdom
Denmark