Norway. Helgeland Kraft AS
|Date of agreement:||15 May 2023|
|Customer:||Helgeland Kraft AS|
|Amount in NOK:||NOK 146 million|
|Amount in EUR:||EUR 12.5 million|
|NACE sector / loan type:||Production and distribution of electricity|
This loan contributes to climate change mitigation: 100%
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Clean transport solutions and Renewable energy generation
Amount disbursed: EUR 5 million and 7.2 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 co-financing a NOK 293 million investment programme for the Grytåga hydropower plant (NOK 173 million) in Vefsn Municipality, Nordland, and the electric vehicle charging infrastructure LAD OPP (NOK 120 million) across Northern Norway.
Grytåga’s capacity will rise from 48 MW to 62 MW, opening for increased power generation during high-demand periods. The upgrades include a new transformer, turbine, generator, and tunnel surface refurbishment.
The LAD OPP charging station rollout involves 116 points across Northern Norway, of which a third are already installed with an effect between 22-180 kW.
Both projects support Norway’s climate target of reducing CO2e emissions by 55% compared to 1990 levels by 2030.
Helgeland Kraft AS is based in Helgeland, Northern Norway, and its core businesses are the production of hydropower, distribution, and electricity sales.
In 2016, NIB signed another 15-year loan with Helgeland Kraft for the construction of six hydropower plants.
Fulfilment of NIB's mandate
The Grytåga hydropower plant upgrade will increase installed capacity from 48 MW to 62 MW and turbine capacity from 30 m3/s to 40 m3/s. This increase will shorten production time from 5,000 to 3,900 hours with a maintained annual output of 250 GWh. The upgrade will boost the peak period production, supporting the balance of fluctuating wind power output.
Using water from four regulated lakes, the Grytåga plant, operational since 1963, is not expected to cause significant environmental impacts from its implementation. Meeting the EU taxonomy’s technical screening criteria for hydropower and likely fulfilling the do no significant harm criteria, the project is considered aligned.
EV charging infrastructure:
The expansion aligns with Norway’s national strategy to increase charging infrastructure and reduce greenhouse gas emissions. Electrification is essential for a low-emission society by 2050, and convenient charging access encourages more to start using EVs.
The development of charging systems is crucial for transitioning to cleaner, energy-efficient transport. The project aligns with the Taxonomy’s Technical Screening Criteria by promoting low-carbon transport and encouraging the shift from fossil fuel vehicles to EVs.
The project supports the transition to low carbon road transport and is not expected to bring any significant negative environmental impact.