NIB lends to increase hydropower generation in Southern Norway

• NIB is providing a 10-year loan of NOK 1 billion (approximately EUR 93 million) to Å Energi AS for hydropower investments in southern Norway.
• The financing supports new renewable electricity generation, more efficient use of existing hydropower assets and improved reliability of critical energy infrastructure.

The financing will support the construction of three new hydropower plants — Øygard and Kvernevatn in Åseral South in Agder, and Skjeggedal in Åmli — and the refurbishment of the existing Høgefoss and Hofsfoss plants in Buskerud and Telemark.

The investment programme has a total estimated capital expenditure of NOK 2 billion. Combined, the new and refurbished hydropower plants are expected to increase annual electricity generation by around 130 GWh. The project also includes approximately 6 km of new grid infrastructure.

Steffen Syvertsen, CEO of Å Energi, said: “Å Energi has high investment ambitions going forward within the core business activities hydro power production and power grid to maintain and supply high-quality critical infrastructure. We are happy to provide new production capacity to the markets. NIB is an important longstanding financing partner, making fundamental contribution to Å Energi to realize our strategic growth ambitions”

André Küüsvek, NIB President and CEO, said: “Norway needs more power and better use of the hydropower resources that are already in place. These investments deliver both. By building new capacity and upgrading existing hydropower plants, Å Energi is helping to increase power generation and strengthen the resilience of the power system. These are the investments Norway needs to meet growing electricity demand and enable further electrification and value creation.”

Å Energi is Norway’s third-largest power producer, generating around 13 TWh of electricity per year, and owns and operates regional power grids serving approximately 423,000 customers. The company was formed in 2022 merger with the merger of Agder Energi and Glitre Energi and is headquartered in Kristiansand.

NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.

For further information, please contact

Jussi Nikkanen, Senior Banker, at +358 10 618 0351, jussi.nikkanen@nib.int

Arild Moen, Associate Director, External Communications Leads, +358 10 618 0496, Arild.Moen@nib.int