16 Sep 2013
NIB finances Lithuania’s European electricity market integration
NIB and the Lithuanian electricity transmission system operator Litgrid AB have signed a 10-year-maturity EUR 22 million loan agreement. The loan will be used to reconstruct and prepare the national network for integration with Nordic and European electricity markets.
The NIB-financed projects cover the reconstruction of the Klaipėda and Panevėžys substations, the Šiauliai substation and switchyard, and other smaller 110 kV switchyards. The projects are budgeted at a total cost of EUR 45 million and will be finalised by the end of 2016.
The investment will improve the security and reliability of the transmission network and allow Lithuania to connected to the European power grid via Sweden (NordBalt 700 MW) and Poland (LitPol 1,000 MW).
The project is part of Litgrid’s EUR 479 million investment programme for 2013–2017. The programme aims to reduce transformer station electricity losses by 2.2 GWh annually, reducing the network’s overall losses by 1%. The improvements are expected to increase economic activities and add to efficient use of production capacities.
The Lithuanian electricity transmission system operator Litgrid AB is responsible for integrating the national power system into the European power infrastructure and electricity market. The state-owned company employs 220 people and is in charge of implementing the strategic electricity cross-border links NordBalt (Lithuania-Sweden) and LitPol Link (Lithuania-Poland).
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
Arild Moen, Senior Communications Manager, +358 10 618 0496, email@example.com