Norway. LINJA AS
|Date of agreement:||12 Jun 2023|
|Amount in NOK:||NOK 200 million|
|Amount in EUR:||EUR 17 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
NIB agrees a 7-year loan agreement with Linja AS to finance electricity network investments in Western Norway between 2022 and 2026.
The NOK 200 million (EUR 17 million) loan will co-finance the construction of new power lines, a new substation, and the refurbishment of existing infrastructure within the Møre og Romsdal county. By expanding distribution capacity, reducing power outages, and facilitating the electrification of transport, Linja AS aims to meet the rising demand for electricity and drive sustainable development in the region.
The total amount of the investment programme during 2022-26 is NOK 456 million, of which NIB will finance approximately 44%.
Linja AS is an electricity distribution network company (DSO) operating in Møre og Romsdal and Sogn og Fjordane counties in Western Norway. It is responsible for ensuring the safe and reliable distribution of electricity to residential, commercial, and industrial customers in their operating area. Linja AS plays an important role in supporting the energy needs of the region and promoting sustainable development in line with Norway’s energy and climate goals.
Fulfilment of NIB's mandate
Linja AS has outlined plans for infrastructure development between 2022 and 2026 to meet increasing electricity demand. These initiatives will improve infrastructure quality and address grid constraints, contributing to the overall development of a sustainable energy sector.
The projects to be co-financed by NIB are well aligned with the Norwegian climate target of 55% CO2e emissions reduction compared to 1990 levels by 2030. Furthermore, the projects support the ambition of the Norwegian Energy Commission to achieve energy efficiency of 20 TWh/y and 40TWh/y in new power generation by 2030.
No sustainability risks have been identified in relation to the projects.