Norway. Hafslund ASA

Date of agreement:14 May 2024
Customer:Hafslund ASA
Amount in NOK:NOK 1,000 million
Amount in EUR:EUR 88 million
Maturity:10 years
NACE sector / loan type:Electricity, gas, steam and hot water supply

This loan contributes to climate change mitigation: 100%


The loan has been provided for financing 50% of an investment programme to rehabilitate dams and hydropower stations and control equipment in Norway.

In cooperation with Norwegian authorities, Hafslund has prepared a plan to upgrade several dams, starting with the most important assets such as Viddalen, Nyheller og Rødungen North.

The investments are critical both from climate change adaption perspective as well as in strengthening Norway’s renewable power generation potential by contributing to the dams’ lifetime extension of energy generation assets and increase in generation capacity.

As such, the NIB loan would support investments which are fully aligned with Norway’s ambition to increase the generation of renewable energy.

The Hafslund group consists of three business areas: Hydropower (Hafslund Eco Vannkraft), District heating and cooling (Hafslund Oslo Celsio) and Growth and investments (Hafslund Vekst). Hafslund Eco Vannkraft is Norway’s second largest hydropower producer with an installed capacity of 5.2 GW distributed across some 81 power plants mainly located in the south of the country. Hafslund Vekst tests and develops new business concepts and assists customers with advisory services. Hafslund Oslo Celsio, formerly Fortum Oslo Varme, is Norway’s largest district heating producer and supplies hot water for heating to more than 200,000 people who live or work in the greater Oslo region.

Fulfilment of NIB's mandate

Due to increased risks of extreme weather, enhancing dam safety is crucial to prevent catastrophic impacts on the region and its power system. These upgrades are vital for ensuring a stable power supply and public safety.

Expected productivity impact

  • Capex EUR million: 185

The project will also increase the annual production of renewable energy generation by 81 GWh, resulting in 17.3 kt of CO2eq per saving per year, according to the IFI Greenhouse gas emission accounting methodology.

Expected environmental impact:

  • Renewable energy generation
  • Three dams reconstructed

Sustainability summary

The project focuses on maintaining and improving the safety and environmental aspects of operational hydropower plants and dams, thus not expecting significant new local environmental impacts.

Press release

NIB and Hafslund to reinforce dam safety and secure power supply

Press release

NIB og Hafslund forsterker damsikkerhet og sikrer strømforsyning