Finland. Keravan Energia Oy
| Date of agreement: | 28 Sep 2023 |
|---|---|
| Country: | Finland |
| Customer: | Keravan Energia Oy |
| Amount in EUR: | EUR 10 million |
| Maturity: | 10 years |
| 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: 15%
NEB category: Transmission, distribution and storage systems
Amount disbursed: EUR 1.5 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
Project
The loan has been provided for the Finnish energy company Keravan Energia Oy to co-finance the company’s investments in the electricity distribution and district heating network over 2023-2024.
The investments will finance replacements of overhead lines with underground cabling and an upgrade of a substation.
In addition, the loan will finance investments in the district heating network, including a district heating battery and electric heat boiler.
The borrower, Keravan Energia Oy provides electricity, district heat and other energy solutions in the area Kerava and Sipoo. Keravan Energia Oy is the parent company to its fully owned subsidiaries Sipoon Energia Oy and Kerava Thermal Power Oy. The company was established in 1906 and is owned by the city of Kerava 96,5% and the municipality of Sipoo 3,5%.
Fulfilment of NIB's mandate
As a result of the project, the planned investments will improve the security of supply and expand the networks in Kerava and Sipoo area. Underground cabling will reduce power outages caused by exceptional weather events significantly and thus improve security of supply.
As the population continues to increase, the investments will mostly focus on increase in connections. The investments will reply also to the increased demand for electricity due to for example the electrification of transportation.
The power distribution network in Sipoo is more fragile due to its length, low cabling rate and more challenging environmental conditions. The allocation of the forthcoming investments in Sipoo are mostly geared toward security of supply.
According to the available data for EU Taxonomy alignment, the Substantial Contribution (SC) criteria are fully aligned, and the Do No Significant Harm (DNSH) criteria are partially aligned for the for the financed subprojects.
Impact indicators in relation to the investments:
- Increase in cabling rate in the network of Sipoon Energia (0,4 kV voltage network) %: 33
- Increase in cabling rate in the network of Sipoon Energia (1-70 kV voltage network) %: 42
- Households affected: 32,777
- Business clients affected: 4,342
Sustainability summary
NIB has not identified any significant environmental or social sustainability concerns related to the investments.
