22 Sep 2014
NIB finances Norwegian hydropower plants and network upgrade
Machine hall at Kaggefoss hydropower plant Photo: EB
The Nordic Investment Bank (NIB) has signed a 15-year maturity NOK 350 million loan (EUR 42.4 million) with the Norwegian hydroelectric company Energiselskapet Buskerud AS to upgrade two hydropower plants and parts of its distribution network.
The investment is expected to increase generation capacity by 2.5% at both the Kaggefoss and Mykstufoss hydropower plants. Increasing hydropower generation in an already regulated watercourse is an environmentally efficient way of generating electricity.
“NIB’s loan will help Energiselskapet Buskerud to increase the security of supply and prolong the lifetime of its hydropower plants for another 30 years,” says Henrik Normann, NIB President and CEO.
Energiselskapet Buskerud (EB) is also upgrading old distribution lines from 66 kV to 132 kV and adding new substations to increase security of supply, reduce power losses and reduce the magnetic field along the line. Upgrading the distribution network will enhance the security of supply, and contribute to increased productivity and economic efficiency. The network project will also enable new renewable energy generation capacity to be connected to the grid.
EB is Norway’s 10th largest hydroelectric power company in terms of electricity produced. The company distributes to about 58,000 customers. EB employs about 240 people and is 50% owned by the Municipality of Drammen and 50% owned by Buskerud County Municipality’s renewable investment company Vardar AS.
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
Mr Yngve Söderlund, Senior Manager Lending, at +358 10 618 0239,
Mr Arild Moen, Senior Communications Officer, at +358 10 618 0496,