Norway. Agder Energi AS

Date of agreement:21 Jan 2020
Customer:Agder Energi AS
Amount in NOK:NOK 600 million
Amount in EUR:EUR 59.39 million
Maturity:10 years
NACE sector / loan type:Production and distribution of electricity

Financing from NIB Environmental Bond proceeds

NEB-eligible share: 100%

NEB category: Renewable energy generation

Amount disbursed: EUR 59.4 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


NIB is providing a loan to finance Agder Energi’s Åseral Nord hydropower project along the Mandal watercourse in Åseral, Vest-Agder of Norway. The project consists of a new dam, a hydro tunnel and an additional turbine at the Skjerka power station.

Agder Energi is constructing a new dam directly downstream from the old Langevatn dam, which dates back to the 1950s.  The new dam is 10 metres higher and increases the reservoir volume from 22 million cubic metres to 47 million cubic metres.

As the existing approximately 13 km-long tunnel connecting the Langevatn dam to the Nåvatn reservoir is in poor condition and at risk of collapsing, the company is constructing a new tunnel of 7.2 kilometres. This new tunnel will enable better hydraulic capacity.

The Skjerka hydropower plant utilises water from the Nåvatn reservoir. The power plant will be equipped with an additional Francis turbine. The turbine hall is located inside the mountain.

Agder Energi AS is one of the largest hydropower producers in Norway, and majority-owned by local municipalities. The company’s operations also include distribution, end-user hydropower sales and other services.

Fulfilment of NIB's mandate

The investments are expected to increase production capacity, maintain security of supply and contribute to more efficient use of hydropower resources. Expected productivity impacts related to the investments include:

  • an increase in production by 60 GWh annually
  • a reservoir capacity increase from 6.5% to 14% of the net precipitation volume
  • a reduction in water volumes bypassing the power stations by around 88 million cubic metres annually

The additional annual electricity generation is assumed to contribute to shift from fossil fuel based power and thus indirectly reduce greenhouse gas emissions.

Expected environmental impacts related to the investments include:

  • increased annual power generation (GWh) for the Turbine 2 at Skjerka, as well as from the entire hydropower system in the Mandal River

Monitoring results for discharges of tunnel water

Sustainability summary

This is a project with a potentially extensive environmental and/or social impact (category A, read more)

An already regulated river system is being utilised in a more efficient manner with limited additional negative impacts.

Press release

NIB finances increased hydropower efficiency in Norway

Press release

NIB finansierer økt vannkrafteffektivitet i Norge