Sweden. AB Borlänge Energi
| Date of agreement: | 07 Feb 2020 |
|---|---|
| Country: | Sweden |
| Customer: | AB Borlänge Energi |
| Amount in SEK: | SEK 100 million |
| Amount in EUR: | EUR 9.5 million |
| Maturity: | 15 years |
| NACE sector / loan type: | Collection, purification and distribution of water |
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Blue Bond project and Transmission, distribution and storage systems
Amount disbursed: EUR 6.7 million and 2.9 million
Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds
Project
In order to diversify the funding base of Borlänge Energi, NIB has provided financing for an ongoing wastewater expansion project to protect a drinking water resource at Lennheden, and a power line to connect the OX2 33 MW Orrberget wind power plants to the grid.
In addition to installing pumping stations, the Lennheden sewerage project involves laying approximately 12 kilometres of pipes to connect some 300 individual properties to the central wastewater treatment plant in Borlänge. The new capacity will amount to 670 population equivalents (PE).
The investment consists of a 27-kilometre cable and an overhead 36 kV power line to connect the nine windmills at Orrberget to the network. The power line was completed in 2019.The windmills have a total capacity of 33 MW and are expected to produce around 96 GWh of electricity annually.
AB Borlänge Energi offers a wide range of services including heat and power generation and distribution, power grids, fibre internet, wastewater treatment and waste management. The utility is 100% owned by the Municipality of Borlänge.
Fulfilment of NIB's mandate
Wastewater:
Productivity
Upgrading of the infrastructure will improve access to sewerage services for residential buildings.
Environment
In the village of Lennheden, there are only single household solutions for wastewater and freshwater, some of which are old and in poor condition. The village is located on top of a large groundwater aquifer called Badelundaåsen, an esker from the last glacial period. This esker is one of 28 fresh water sources of national interest, and supplies 85,000 inhabitants in the municipalities of Borlänge and Falun with drinking water.
In order to ensure the groundwater does not become contaminated with pathogens and pharmaceutical residues, the Lennheden village will be connected to the central wastewater plant.
Estimated impact in relation to the project:
- Number of PE connected from Lennheden
Power line:
Productivity
The share of wind power of total electricity production is increasing in Sweden. Although this investment will increase the generation capacity, additional capacity of intermittent power increases network instability, bringing balancing cost pressure on network operators. In the situation of a low-price environment, intermittent energy without storage options can also phase out electricity produced by base-load producers, minimizing their incentives for further investments into base-load capacity.
Environment
The investment in the power line enables 96 GWh of renewable energy annually to be supplied to the grid.
Estimated impact in relation to the project:
- Output from the Orrberget Windpark.
Sustainability summary
Wastewater:
Pipes will mostly be laid along existing roads. Two river crossings over the river Dalälven will be built and some ditch work will be carried out in forest areas.
Power line:
The power line connecting the Orrberget wind power plant runs as cable along existing roads and mostly along the same route as an existing smaller power line to the area. The hilltop used for the establishment of the wind power park is also the location of a cell tower for radio communication. The environmental impacts are local and limited.
