London, Jan 27, 2026, 07:46 GMT
- National Grid and Germany’s TenneT are teaming up on a 2-gigawatt North Sea power link, targeting completion in the late 2030s
- The Hamburg pact, signed by 10 countries, commits to 100 GW of shared offshore wind projects, intensifying pressure on grid expansion
- National Grid shares ticked up Monday, with investors turning their focus away from turbines and back to cables
National Grid and Germany’s TenneT have unveiled plans for a new power link connecting offshore wind farms in the North Sea, capable of transferring up to 2 gigawatts between the two nations. The announcement pushed National Grid’s shares slightly higher during early trading in London on Monday.
Timing is crucial. European governments aim to lock in offshore wind goals, but the bottleneck has shifted away from turbines. Now, the challenge lies with onshore connections, substations, and cross-border cables—projects that drag on for years, spark protests, and soak up capital.
At Monday’s summit in Hamburg, Britain and nine other nations put their names on the Hamburg Declaration. The deal commits them to building 100 gigawatts of offshore wind, linking wind farms across borders. UK energy minister Ed Miliband described the goal as freeing Britain from the “fossil fuel rollercoaster.” UK government
National Grid shares edged up roughly 0.4% to 1,196.5 pence by 0843 GMT Monday, oscillating between 1,194.5 and 1,202.5 pence earlier. The FTSE 100 showed little movement, per Investors’ Chronicle data referenced by TechStock².
The GriffinLink interconnector — a high-voltage cable designed to transmit electricity between two markets — aims to connect offshore wind farms in Britain and Germany, supplying power to both nations. The companies involved expect it could be up and running by the late 2030s.
National Grid Ventures President Ben Wilson described the Hamburg move as “a step towards a more integrated energy system.” He added that projects like LionLink have the potential to “reduce costs” and minimize disruptions along the coasts. UK government
Investors are sticking with the classic utility pitch—but updated: regulated networks with returns driven by regulators, not volatile spot power prices. Jefferies bumped up its National Grid target late last week, highlighting regulatory certainty covering roughly 80% of its regulated asset base—the assets regulators permit the utility to earn returns on—through fiscal 2028, TechStock² reported.
The drive also hinges on geopolitics and gas supplies. U.S. gas accounted for 57% of LNG imports to the EU and Britain in 2025, Reuters columnist Ron Bousso reported. Offshore wind already supplied 19% of the EU’s electricity last year, according to WindEurope.
Cross-border links are pitched as a solution to reduce wind waste. “When it’s windy in Germany, it might not be windy in the UK,” said Jordan May, senior analyst at consultancy TGS 4C, suggesting that excess German wind power could be sent westward rather than being curtailed. Reuters
The downside risks, though, are well-known: steep upfront expenses, sluggish permitting processes, and regulators who might cut allowed returns just as borrowing costs climb. Even if the political will is there now, syncing subsidy rules and cost-sharing across borders could still take years.
On the ground, things are a bit chaotic. Local UK reports highlighted fresh temporary traffic lights along sections of the A53, where National Grid crews are active, cautioning drivers about potential delays.
National Grid has its next major investor update scheduled for May 14, when it releases full-year results for 2025/26, according to the company’s event calendar.
