Finland. Leppäkoski Group Oy

Date of agreement:22 Dec 2022
Customer:Leppäkoski Group Oy
Amount in EUR:EUR 12 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 the Finnish energy company Leppäkoski Group Oy to co-finance the company’s investments in electricity distribution and the district heating network in the Pirkanmaa area (municipalities Ikaalinen, Nokia, Ylöjärvi, and Parkano) in Finland.

The investments will finance improvements in the electricity distribution network, the upgrade of substations and the installation of smart meters. The installation of new smart meters will help the electricity user and the electricity supplier to obtain more accurate information about electricity consumption, time of use and thus support electricity savings.

A major part of the electricity network investment is to replace the overhead lines with underground cables which significantly improves the security of supply. In addition, the loan will finance investments in the district heating network. Investments in the district heating network concern the expansion and refurbishment of the district heating network and investment in heat recovery systems. These investments will reduce emissions and enable new customers to join the district heating network.

The borrower Leppäkoski Group is an energy company providing electricity, district heat and other energy solutions. The group consists of the parent company Leppäkoski Group Oy and its fully owned subsidiaries Leppäkosken Sähkö Oy, Leppäkosken Lämpö Oy, and Oy.

Fulfilment of NIB's mandate

As a result of the project, the planned investments will improve the security of supply and reliability of the grid.

The upgrade of meters is essential for the forthcoming change to shorter price and balancing intervals. Shorter intervals allow for more accurate timing of consumption and efficient balancing of supply and demand. On a system level, this will reduce balancing costs arising from differences in expected and realised consumption.

The investments will support operation and help to decarbonize the regional district heating system

Impact indicators in relation to the investments:

  • Capex EUR million electricity distribution network
  • Increase in cabling rate, low and high voltage network
  • Number of substation upgrades
  • Capex EUR million, district heating network
  • Energy generation heat pump Nokia, MWh/a
  • Estimated emission savings heat pump Nokia, tCO2e
  • Energy generation heat recovery system Parkano, MWh/a
  • Estimated emission savings heat recovery system Parkano, tCO2e

Sustainability summary

NIB has not identified any significant environmental or social sustainability concerns related to the investments.

Press release

NIB finances investments in electricity distribution and district heating in Finland

Press release

NIB rahoittaa sähkönjakeluun ja kaukolämpöön liittyviä investointeja Suomessa