Norway. Tensio AS
|Date of agreement:||12 Jun 2023|
|Amount in NOK:||NOK 500 million|
|Amount in EUR:||EUR 43.5 million|
|NACE sector / loan type:||Transmission and distribution of electricity|
The loan has been provided for upgrading and expanding the capacity of substations, the regional grid and distribution network cabling, strengthening the resiliency of the grid to cater to a greater demand for energy, enable electrical transports and electrification of maritime vessels. The project covers investments into the regional distribution grid during 2023-2024.
The projects to be co-financed by NIB are closely aligned with the Norwegian 2030 climate target of 55% CO2e emissions reduction compared to 1990 levels, with electrification being a key component to achieving that target.
Furthermore, the projects support the ambition of the Norwegian Energy Commission to achieve energy efficiency of 20 TWh/y and 40TWh in new power generation by 2030, as grid investments are the primary field of investments to meet such objectives.
In 2021, NIB signed a 10-year loan with Tensio AS to upgrade and expand its electricity grid and network in the County of Trøndelag.
Tensio AS is the second largest power grid company in Norway and operates the regional and distribution network in County of Trøndelag. The Tensio Group was established in June 2019 with the founding of Tensio AS, which owns 100% of the shares in TrønderEnergi Nett AS and NTE Nett AS. Tensio AS is owned by NTE AS (40%) and TrønderEnergi AS (40%) and the pension fund KLP (20%).
Fulfilment of NIB's mandate
The main driving force behind the investments is the growth in electricity consumption in Trondheim, which is primarily fuelled by the electrification of transportation and industrial development. To handle the increased power demand, it is necessary to raise the voltage, making investments in sub-station and line upgrades crucial.
Upgrading and expanding the networks will enhance the quality of infrastructure services and address current limitations in the grid, ultimately improving the reliability of power supply.
The investments aim to increase the grid’s capacity and alleviate congestion in the network. Additionally, a small amount of additional renewable energy will be made available in the market through these investments.
Considering the energy production mix in the Tensio region, with 60% hydro power and 40% wind power, the resulting CO2 footprint of the electricity will be significantly below the eligibility threshold set by the EU taxonomy.
Tensio’s transmission and distribution infrastructure is aligned with Taxonomy’s sustainability criteria, making a substantial contribution to climate change mitigation.