|Date of agreement:
|11 Apr 2023
|Amount in DKK:
|DKK 1 million
|Amount in EUR:
|EUR 134.4 million
|NACE sector / loan type:
|Electricity, gas, steam and hot water supply
NIB is providing a ten-year loan to co-finance the installation of ten new substations and the refurbishment or upgrade of 45 existing substations in Denmark, in accordance with the government approved Energinet investment and financing plan for 2023-2025.
The total amount to be invested in new- and re-furbished substations during 2023-25 is DKK 6.19 billion, of which NIB will finance approximately 16%.
Energinet owns and operates the overall electricity and gas network in Denmark and is responsible for providing safe energy to the country’s citizens, businesses, and institutions. Energinet was established in 2005 and is an independent, public company under the Ministry of Climate, Energy, and Utilities.
Fulfilment of NIB's mandate
While the substation refurbishments and upgrades will only increase capacity by approximately 5%, the investments will improve network operation efficiency and contribute to reducing operating costs.
Substation investments will generally strengthen Denmark’s network resilience, reduce outage times, and prepare the network for further roll-out of intermittent renewable energy.
The investments in grid capacity will enable and support the electrification of industry and society in Denmark and other NIB member countries.
Impact expected from the investment
- Number of new substations
- Number of refurbished substations
NIB has not identified any potential nor significant environmental risks.