Norway. Mørenett AS
|Date of agreement:||02 Jun 2022|
|Amount in NOK:||NOK 200 million|
|Amount in EUR:||EUR 20.86 million|
|NACE sector / loan type:||Production and distribution of electricity|
This loan contributes to climate change mitigation: 100%
NIB is providing financing to upgrade and refurbish the distribution network in the county of Møre og Romsdal, including the construction and upgrading of three substations and an upgrade of the Eiksund-Rjånes sea cable.
The investments will enhance grid efficiency and capacity, increase resilience and enable electrification. The investments comprise six subprojects at Giskemo, Sandvikskaret-Djupvik, Ørsta, Haugen, Bondalen and Hareidsberget, involving either the construction of new 132 kV power lines or new transmission stations, enabling an estimated increase in energy distribution from sustainable sources of around 100 MW.
The investments are part of Mørenett’s NOK 430 million investment programme between 2021 and 2025.
Mørenett is responsible for distributing electricity to around 73,000 customers in 12 municipalities in the Northwest of Norway. The owners of Mørenett are Tafjord Kraft (51 %) and Tussa Kraft AS (49%), which are both almost exclusively owned by the municipalities.
Fulfilment of NIB's mandate
The upgrading and expansion of the networks will improve the quality of infrastructure services, reduce current grid constraints and enhance security of supply. In the ongoing transition of the power sector with increasing capacity demand and integration of renewable sources into the existing power system, the infrastructure needs to adapt. The investment programme will especially support the continued electrification of society, including transport and the expansion of the industrial base by increasing access to reliable electricity provision.
Investments contributing to increased electrification in power networks are eligible for the EU Taxonomy. As all the electricity fed to Mørenett’s distribution network is produced using hydropower, along with one wind power plant, the electricity’s CO2 footprint is significantly below the eligibility threshold of 100 g/kWh stipulated in the EU taxonomy.
No significant concerns have been identified.