The Østerbø hydrpower plant will be located inside the mountain at the Sognefjord. Image: SFE.
29 Nov 2019
NIB finances new hydropower in Norway
NIB and the Norwegian utility company Sogn og Fjordane Energi AS have signed a 15-year loan agreement of EUR 30 million to finance the construction of a new hydropower plant in Østerbø, as well as a 20-kilometre regional power line.
The new Østerbø hydrpower plant, located on the Sognefjord in the municipality of Høyanger, will have a 47MW turbine and produce an annual electricity output of 165 GWh. In addition, a 20 kilometre-long regional power line connecting the plant’s power station to Stordalen in Masfjord municipality will be installed.
The investment will increase the security of local electricity supply and add production capacity, serving households and businesses in Western Norway.
The project is eligible for financing with NIB Environmental Bonds, as the plant has a water reservoir that allows it to store and balance fluctuating generation and demand patterns. Thus, the production can be maximised during peak load hours, which indirectly cuts greenhouse gas emissions more than in conventional run-of-river hydropower stations.
Sogn og Fjordane Energi AS owns fifteen power plants and shares in five throughout the Sogn og Fjordane region. The company is headquartered in Sandane.
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.
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