Municipality of Borlänge

The uncommitted credit facility has been provided to the Municipality of Borlänge to co-finance investments in electricity grid infrastructure, as well as in drinking water and wastewater networks. The Municipality of Borlänge will on-lend the funds to Borlänge Energi, a municipal utility company responsible for implementing the projects,  

The projects are split into sub-projects: 

• An investment programme in electricity grids during 2025-2029. By renewing, reinforcing and expanding Borlänge’s distribution network, the investments will increase generation capacity and enable a new charging infrastructure. Around 55 kilometres of new cable will be laid annually. The total project cost is SEK 370–375 million, of which NIB’s share is SEK 185 million. 

• Investments in drinking water and wastewater expansion in Pusselbo, Repbäcken, and Lennheden, to protect the local groundwater catchment that supplies large parts of Borlänge and Falun with public drinking water. The groundwater catchment area is recognised as one of the 28 freshwater sources of national interest in Sweden. The total project cost is SEK 335 million, of which NIB has already financed SEK 70 million with a loan approved in February 2020. With the new SEK 55 million loan, NIB’s total financing of the project will increase to SEK 125 million.  

• Investments in the expansion of Kyna’s drinking water and wastewater systems to improve water quality by connecting dwellings currently reliant on individual sewerage systems and private drinking water wells to the municipal network. The total project cost is SEK 70 million, of which NIB is to finance SEK 10 million.  

  

Investment programme in electricity grid infrastructure 

 

Productivity: 

Borlänge’s electricity transmission capacity requirements are expected to increase over the coming years by 23MW to 125MW.  

The project will enable new grid connections and ensure that the electricity network can support the transition to sustainable transport and the integration of renewable electricity production. The investments will improve operational efficiency and reduce maintenance costs.  

Grid modernisation also includes the replacement of uninsulated overhead lines, typically linked to fewer faults and lower maintenance intensity per kWh, representing a clear long-term productivity gain.  

Ex-post indicators: 

• SAIDI (System Average Interruption Duration Index) 

• Increased transmission capacity 

 

Environment: 

The Municipality of Borlänge only uses renewable energy capacity, and the project is expected to increase the electricity transmission capacity by 23 MW.  

 

Drinking water and wastewater expansion in Pusselbo-Repbäcken-Lennheden, and in Kyna 

 

Productivity:

In Pusselbo, Repbäcken, and Lennhaden, the investments are primarily driven by the protection of the water source. In wastewater, the investments focus heavily on connecting the dwellings that currently rely on individual sewerage to the municipal network. A small portion of the investments will be used to renew the existing network. For drinking water, around half the investments will be used for expansions in areas where dwellings use private wells and will be connected to the municipal network, while the other half of the investment’s funds will support reinvestment in the existing network.  

In Kyna, all investments in both drinking water and wastewater are related to the connections of existing buildings with the municipal network.  

Both investments are expected to reduce network water losses.  

Ex-post indicators: 

• Number of centralised connections. 

 

Environment: 

In Pusselbo, Repbäcken, and Lennhaden, the investments aim to protect the local groundwater catchment. 

In Kyna, water quality is expected to improve.  

   

 

  

No concerns identified.