Rødungen Nord Image: Hafslund

14 May 2024

NIB and Hafslund to reinforce dam safety and secure power supply

NIB has signed a loan agreement with the renewable energy company Hafslund AS, to rehabilitate dams and hydropower stations. Due to increased risks of extreme weather, enhancing dam safety is crucial to prevent catastrophic impacts on the region and its power system. These upgrades are essential for ensuring a stable power supply and public safety.

The total loan volume of NOK 1 billion (EUR 88 million) is split between two equally sized tranches, with tenors of 10- and 8 years respectively. The loan will help finance 50% of Hafslund’s investment programme to upgrade several dams, starting with the most important ones such as Viddalen, Nyheller and Rødungen Nord.

“Rehabilitating dams and hydropower stations are critical both from a climate change adaptation perspective, as well as for strengthening Norway’s renewable power generation by increasing generation capacity and extending the technical lifetime,” says André Küüsvek, President and CEO of NIB.

Berit Sande, CFO at Hafslund said “We are pleased with the signing of this loan agreement and appreciates the continued long-term cooperation with NIB. The proceeds will be used to finance assets and projects that contribute to the transition towards low-carbon development. This represents an important aspect of our vision – For a world in balance, with renewables.”

The Hafslund group consists of three business areas: Hydropower (Hafslund Eco Vannkraft), District heating and cooling (Hafslund Oslo Celsio) and Growth and investments (Hafslund Vekst). Hafslund Eco Vannkraft is Norway’s second largest hydropower producer with an installed capacity of 5.2 GW distributed across 81 power plants mainly in the south of the country. Hafslund Vekst tests and develops new business concepts and assists customers with advisory services. Hafslund Oslo Celsio is Norway’s largest district heating producer and supplies hot water for heating to more than 200,000 people in the greater Oslo region.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Patrik Marckert, Senior Banker, Public Sector & Utilities, +358 10 618 0266, patrik.marckert@nib.int

Arild Moen, Associate Director, Communications, +358 10 618 0496, arild.moen@nib.int

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14 May 2024

Hafslund ASA

EUR 88 million