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PRYSMIAN GROUP | DIRECTORS’ REPORT

45

On 14 July, the Group was awarded a new contract worth around Euro 550 million for an

HVDC submarine

interconnector between Norway and Britain

.

The project, known as NSN (North Sea Network) Link, will be the first power transmission cable system to

connect these two nations; its construction is of great strategic importance for the trading of electricity

between the Norwegian and British grids and will also offer a way to share energy from renewable sources

and increase the security of electricity supply. The entire project will set a new record as the longest HVDC

submarine interconnector ever installed, following a route of about 740 km between the converter stations in

Kvilldal (Norway) and Blyth (Britain).

All cables will be produced at the Arco Felice plant (Naples, Italy). The main marine cable-laying operations

will be performed by the "Giulio Verne", one of the Group's cable-laying vessels.

In the same month, Prysmian was awarded a new contract for a power line between Jersey in the Channel

Islands and the French mainland.

The project, known as Normandie 1, involves the turnkey supply and installation of an

HVAC

(High Voltage

Alternating Current)

interconnector between France (Surville) and Jersey (Archirondel),

comprising 28

km of 90 kV 3-core cable in a single length as well as related network components and specialist jointing

works.

Prysmian will be responsible for design, manufacture and commissioning of submarine and underground

cables as part of a larger contract worth around Euro 28 million, awarded to the consortium between

Prysmian and VBMS; VBMS will perform the marine cable laying operations, including landfall protection.

The submarine power line will replace the existing and now obsolete Normandie 1 interconnector, while its

100 MW capacity will be shared by both Jersey and Guernsey under the CIEG (Channel Islands Electricity

Grid) partnership agreement, which is the vehicle through which the local utilities procure power from EDF in

France.

The submarine cables for the Normandie 1 link will be produced at the Arco Felice plant (Naples, Italy). The

project is due to be completed by October 2016.

On 5 August, Prysmian signed contracts with Nobelwind NV to supply inter-array cables for the Bligh Bank 2

offshore wind farm

located off the coast of Zeebrugge in Belgium. Prysmian will be responsible for the

design, manufacture and supply of 33 kV submarine cables with various cross-sections to connect the 55

individual wind turbines and the farm's Offshore High Voltage Substation (OHVS). In addition a 33 kV

coupling cable will be supplied to serve as a back-up connection between wind farms in this area. Prysmian

will also be responsible for offshore cable jointing and termination services as well as for commissioning.

Cables will be produced at Prysmian's plant in Drammen, Norway, with installation work due to be completed

during the first half of 2017.

On 26 October, the Group won a contract worth a total of more than USD 140 million from Hainan Second

Cross-Sea Interconnection Tie Project Management Co., Ltd. for the design, supply, installation, and

commissioning of a

submarine power line

for the second

interconnection between Hainan island and

the Chinese mainland

. The new submarine power line will complement the existing 500 kV circuit and