Finland. Fingrid Oyj
|Date of agreement:||17 Nov 2021|
|Amount in EUR:||EUR 70 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
This loan contributes to climate change mitigation: 100%
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Transmission, distribution and storage systems
Amount disbursed: EUR 35 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
The loan has been provided for Finland’s transmission system operator Fingrid Oyj to finance the construction of new and upgrades of existing transmission grid substations.
Fingrid’s investments will improve the general network reliability of the electricity transmission for the society and industry as a whole.
Fulfilment of NIB's mandate
The planned investments will improve general network reliability and help the company maintain efficient operation of the grid in Finland.
The planned investments will enable to connect more than 4000 MW of wind power to the grid. The investments also include Fingrid’s first sub-station, in which the potent greenhouse gas sulphur hexafluoride (SF6) used as an electrical insulator is replaced with a mixture of nitrogen and oxygen.
Fingrid is responsible for electricity transmission in the Finnish main grid and plays a key role as Finland aims to reduce its CO2 emissions and increase the share of renewable energy resources in the production of electricity on its way towards carbon neutrality by 2035. The average carbon intensity of electricity generation in Finland in 2018-2020 was 101, 87 and 74 gCO2e/kWh, respectively.
The investment programme is not assessed to have any significant negative environmental or social impacts.