NIB finances improvements in electricity grid in Finland

NIB signs a 15-year loan with Finnish grid operator Porvoon Sähköverkko Oy to finance the construction of a new powerline and substation and upgrades of the existing electricity grid in Porvoo, Finland. 

The EUR 18 million loan will finance the company’s investment programme during 2021-2026. The investments will improve the electricity grid’s reliability and include underground cabling to replace existing overhead lines, the construction of a new substation and the construction of a new powerline.

“The investments in the energy sector play a  vital role in enabling security of supply and sufficient transmission capacity. With this loan we can support investments that add renewable energy capacity to the electricity grid and increase the general network reliability,” says André Küüsvek, NIB President and CEO.

“Through the co-operation with NIB we have been able to secure long-term financing for our grid investment program at competitive terms. We are pleased to see that NIB recognises our decade-long environmental focus,” says Måns Holmberg, CEO of Porvoon Energia.

The investments will ensure that Porvoon Sähköverkko is able to serve growing number of customers and higher demand for electricity. The investments will enable the connection of more decentralised renewable energy to the electricity grid and support the energy transition in Finland towards the climate neutrality target by 2035, as well as support the carbon neutrality target of the City of Porvoo by 2030.

The borrower, Porvoon Sähköverkko Oy is 100% owned by Porvoon Energia and operates the distribution network in and around the Porvoo area. Porvoon Energia is a Finnish utility company based in the southeast of Finland in the City of Porvoo. Its operations include electricity generation, sales, and distribution, as well as district heating. All electricity sold is emission-free.

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
Sebastian Påwals, Director, at +358 10 618 0527, sebastian.pawals@nib.int

Lotta Forssell, Senior Communications Officer, at +358 10 618 0498, lotta.forssell@nib.int

Måns Holmberg, CEO, Porvoon Energia Oy – Borgå Energi Ab, at +358 44 518 1518, mans.holmberg@pbe.fi