Sweden. Ellevio AB

Date of agreement:21 Oct 2022
Customer:Ellevio AB
Amount in SEK:SEK 1,000 million
Amount in EUR:EUR 94.1 million
Maturity:10 years
NACE sector / loan type:Electricity, gas, steam and hot water supply

This loan contributes to climate change mitigation: 100%


NIB provides the loan to rebuild and increase the capacity of two existing switchgear stations in the City of Stockholm, Sweden.

The project comprises new station buildings, indoor GIS switchgears for 110kV and 220kV, new transformers and reactors, new cables, and a new control and protection system. Combined, the total expected distribution capacity will increase by around 800 MW, which represents a 40% distribution capacity increase in the Stockholm region. The combined value is adjusted due to the stations being redundant infeed points and cannot thus be fully loaded at the same time.

Värtan is the largest substation in Stockholm. The Värtan switchgear is currently outdated, and the risk of outages and operational failure is increasing. The new Värtan station will have 2 x 110/33kV and 3x 220/110 kV transformers, which is expected to increase distribution capacity from 325 MW to 600 MW.

The Skanstull project will cover the long-term capacity demand by adding a new possible infeed point from the national grid for Stockholm’s regional- and local grid to the national networks. The new 220 kV switchgear station in Skanstull will connect Ellevio to Svenska Kraftnät’s new planned substation and increase the power distribution by 1,000 MW.

Ellevio AB is the second largest electricity distribution system operator in Sweden with approximately one million customers in the Stockholm area and the central and western parts of Sweden. Ellevio is owned by the Canadian pension fund OMERS Infrastructure (50%), the Third Swedish national pension fund (20%), Folksam (17.5%), and the First Swedish national pension fund (12.5%).

In 2018, NIB signed a 15-year SEK 1.5 billion loan agreement with Ellevio to finance their power distribution modernisation programme between 2017 and 2019.

Fulfilment of NIB's mandate

The upgrading and expansion of Värtan and Skanstull substations will address current constraints and outdated infrastructure, supporting the continued electrification efforts of the society and rising population in the Stockholm region.

The total expected distribution capacity from the two substations will increase by around 800 MW, as it will create new connections to the national grid, representing a 40% effect expansion in the Stockholm region.

The electricity demand in the Stockholm region is expected to increase by approximately 20-30% until 2040, from approximately 1.7 TWh to 2.1 TWh. The demand increase is driven by a growing population, the electrification of the transport sector along with several electricity intensive initiatives and increased maintenance of societal infrastructure. The system will also need to be able to withstand irregular inflows and sharp fluctuations.

Expected productivity impact of the investment:
-Increased distribution capacity in Värtan (275 MW)
-Increased distribution capacity in Skanstull (1,000MW)

The Skanstull and Värtan projects are vital to increase the long-term distribution capacity in Stockholm, thus enabling sustainable development in the Swedish capital region.

Investments in the transmission networks are eligible to the EU Taxonomy as 93% of the electricity sold comes from renewable sources, meaning that the CO2 footprint is significantly below the 100 g/kWh threshold.

Expected environmental impact of the investment:
-Increased distribution capacity Värtan (MW)
-Increased distribution capacity Skanstull (MW)

Sustainability summary

Ellevio supports Sweden’s goal to become fossil free through electrification and to reach net zero GHG emissions by 2045. The rebuilding of the two large substations at Värtan and Skanstull are seen as vital to increase the long-term distribution capacity in Stockholm, thus enabling sustainable development in the Swedish capital region.

Press release

NIB lends to rebuild Ellevio’s electric substations in Stockholm

Press release

NIB beviljar lån för att bygga om Ellevios elstationer i Stockholm