Norway. Statnett SF
|Date of agreement:||26 Oct 2023|
|Amount in NOK:||NOK 1,000 million|
|Amount in EUR:||EUR 84.4 million|
|NACE sector / loan type:||Transmission and distribution of electricity|
The loan has been provided for Statnett for financing two projects, including power line upgrades and a substation update in Norway.
Statnett is upgrading the 300 kV power line between Aurland and Sogndal to 420 kV. This will mainly be accomplished by building a new power line parallel to the existing one, which will be removed after the new line is in use. At the same time, the part of the 300 kV power line between Hove and Sogndal that lies between Sogndal and Ramnaberget in Vik municipality is to be replaced with a new one. The new connections will be completed in 2025 at the earliest, and the old ones will be removed over the next two years. In addition, the Sogndal substation will be renewed.
The second sub-project includes the upgrades of the existing 132 kV power line between Kvandal and Kanstadbotn in Northern Norway. The current power line is approaching the end of its technical service life.
Statnett is the transmission system operator (TSO) of the Norwegian power system, developing and operating the transmission grid which together with underlying grids connects power producers and power consumers. Statnett co-owns cable connections to Sweden, Finland, Denmark, the Netherlands, Germany and the UK. The company has around 1,600 employees. The Norwegian State owns the operator through the Ministry of Petroleum and Energy.
Fulfilment of NIB's mandate
Statnett is the system operator of the Norwegian transmission network providing critical infrastructure. Given that the power demand is accelerating, there has been a record number of requests for new grid connections. The planned upgrades will increase the transmission capacity and reduce the electricity price differentials within the region.
Overall, the grid development plans will provide security of supply and facilitate the connection of new generation capacity, as well as of new industries and the electrification of society. A successful green transition will require new power lines and new power generation.
Statnett’s investment in sub-project Aurland-Sogndal will increase the capacity by 1,000 MW between the two pricing areas of Norway. The main objective of the investment is to facilitate and incentivise additional renewable energy production in the area.
The two project investments are also fully aligned with the EU taxonomy’s technical screening and do no significant harm criteria.
This is a project with a potentially extensive environmental and/or social impact (category A, read more)
Both projects have received the necessary concession from the Norwegian Energy Regulatory Authority for the construction of new powerlines and the demolition of existing ones.
The Aurland and Sogndal part of the project is a project with a potentially extensive environmental and/or social impact (category A; read more).