Iceland. RARIK ohf

Date of agreement:06 Feb 2023
Customer:RARIK ohf
Amount in EUR:EUR 20 million
Maturity:15 years


The loan has been provided for financing the replacement of overhead electricity lines with underground cables to increase security of supply in rural and urban areas of Iceland during 2022-2024. The investment project will improve security of supply by reducing the likelihood of electricity downtime caused by, for instance, weather-related disturbances.

RARIK (Iceland State Electricity) is an Icelandic distribution system operator (DSO). The company’s main objective is distribution of electric power, and it has gradually been working on building distribution networks in rural areas of Iceland.

Fulfilment of NIB's mandate

Network faults have been common with overhead cables in Iceland due to weather conditions. The frequency of faults in the network of RARIK has significantly reduced over the recent decades due to the company’s investments in underground cabling. The investment program will further increase the cabling rate of the network and thereby improve security of supply in Iceland.

Sustainability summary

Only limited and temporary damage will occur when the cables are ploughed down. The trenches are ploughed and filled continuously as the cable is laid and not left open. In some parts traditional digging needs to be applied due to stony conditions. In addition, the removal of the overhead lines will decrease bird collisions.

Press release

NIB financing improves security of electricity supply in Iceland

Press release

Norræni fjárfestingarbankinn eflir öryggi rafmagnsveitu á Íslandi