Finland. Porvoon Sähköverkko Oy
|Date of agreement:||20 Jun 2022|
|Customer:||Porvoon Sähköverkko Oy|
|Amount in EUR:||EUR 18 million|
|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 Finnish electricity grid operator Porvoon Sähköverkko Oy to finance the construction of a new powerline and substation and upgrades of the existing electricity grid in Porvoo, Finland.
The investments will improve the electricity grid’s reliability and include underground cabling to replace existing overhead lines, the construction of a new substation, the renewal of two transformer stations and associated switch gears, and the construction of a new powerline. The purpose of the investments is to ensure that Porvoon Sähköverkko is able to meet the growing electricity demand in the region.
The borrower Porvoon Sähköverkko Oy is 100% owned by Porvoon Energia and it operates the distribution network in and around the Porvoo area. Porvoon Energia is a Finnish utility company based in the southeast of Finland in the City of Porvoo. Its operations include electricity generation, sales, and distribution, as well as district heating. All electricity sold is emission-free.
Fulfilment of NIB's mandate
The planned investments will improve security of supply and help the company maintain efficient operations.
The investments will ensure that Porvoon Sähköverkko is able to serve a growing number of customers and higher demand for electricity. The investments will enable the connection of more decentralised renewable energy to the grid and support the energy transition in Finland towards the climate neutrality target by 2035, as well as support the carbon neutrality target of the City of Porvoo by 2030.
Expected impact related to the investment:
- Investments in network in million euros
- Households connected to the network
- Businesses connected to the network
- Overall underground cabling rate
NIB has not identified any significant environmental or social sustainability concerns.