Finland. Pahkakosken Energia Oy

Date of agreement:14 Dec 2023
Customer:Pahkakosken Energia Oy
Amount in EUR:EUR 50 million
Maturity:15 years
NACE sector / loan type:Production and distribution of electricity

This loan contributes to climate change mitigation: 100%


The loan has been provided for the construction of a 186 MW onshore wind farm in Northern Ostrobothnia, Finland.

The Pahkakoski wind farm will consist of 30 turbines delivered by Vestas Wind Systems A/S. The wind farm will not benefit from any public support scheme. The electricity production will be partly covered by a power purchase agreement with a commercial off-taker and will also have exposure to the wholesale power market.

Grid connection works are complete, and the substation has been energised and connected to the grid. Wind farm development permits are in place and the project completion is expected by August 2025.

This is the first loan agreement signed by NIB under the InvestEU programme. The transaction is eligible under the NIB’s Clean Energy Transition Framework Operation approved by the InvestEU Investment Committee in May.

Pahkakosken Energia Oy is a special purpose company owned by Ilmatar Energy Oy, a Nordic renewable energy company headquartered in Finland and majority-owned by investment funds managed by French asset manager Omnes Capital.

Fulfilment of NIB's mandate

The wind farm will contribute to Finland´s wind power capacity.

The current overall wind power capacity in Finland is increasing at a rate of around 1,000 MW annually. In 2022, wind penetration increased by five percentage points compared to the previous year. This development is expected to reduce power prices and attract energy-intensive industries to the region.

Wind power is one of the most sustainable ways to produce electricity, and this project will result in the avoidance of CO2 emissions that would arise due to the accumulation of more carbon intensive ways of generating electricity.

Expected impact from the project:

  • Capex: EUR 230 million
  • Production capacity: 186 MW
  • Annual production (90% probability): 516 GWh

Sustainability summary

Impacts on noise levels, flickering, biodiversity – especially birds and bats, and reindeer herding, along with other parameters were assessed. It has been concluded that the project has no high-risk environmental impacts, and the Saami people’s interests have been considered.

Sustainability proofing in accordance with the InvestEU Fund requirements were carried out. A sustainability proofing summary is available here.

Press release

NIB’s first signed InvestEU loan goes to windpark in Finland

Press release

NIB:n ensimmäinen InvestEU-ohjelman tukema laina maatuulipuiston rakentamiselle Suomessa