NIB finances upgrade and expansion of electrical grid in Norway
NIB has signed a 5-year loan with Norwegian power grid company Tensio AS to co-finance its 2023-2024 investment programme to upgrade and expand the electricity grid and network in the County of Trøndelag.
The NOK 500 million loan has been provided for upgrading and expanding the capacity of substations, the regional grid and distribution network cabling, strengthening the resiliency of the grid to cater to a greater demand for energy, enable electrical transports and electrification of maritime vessels.
The main driving force behind the investments is the growth in electricity consumption in Trondheim, which is primarily fuelled by the electrification of transportation and industrial development. The upgrade and expansion of the networks will enhance the quality of infrastructure services and address current limitations in the grid, ultimately improving the reliability of power supply. Additionally, a small amount of additional renewable energy will be made available in the market through these investments.
The projects to be co-financed by NIB are closely aligned with the Norwegian 2030 climate target of 55% CO2e emissions reduction compared to 1990 levels. Furthermore, the projects support the ambition of the Norwegian Energy Commission to achieve energy efficiency of 20 TWh/y and 40TWh in new power generation by 2030, as grid investments are the primary field of investments to meet such objectives.
“We are proud to co-finance this upgrade and expansion of Tensio’s electricity grid. The project aligns with Norway’s climate targets and supports the transition to renewable energy. Through our collaboration, we aim to drive positive change, enhance energy resilience, and contribute to a greener future,” said André Küüsvek, President and CEO of NIB.
In 2021, NIB signed a 10-year loan with Tensio AS to upgrade and expand its electricity grid and network in the County of Trøndelag.
Tensio AS operates the regional and distribution network in Trøndelag county in Central Norway. The Tensio Group was established in June 2019 with the founding of Tensio AS, which owns 100% of the shares in TrønderEnergi Nett AS and NTE Nett AS. Tensio AS is owned by NTE AS (40%) and TrønderEnergi AS (40%) and the pension fund KLP (20%). Tensio is the second largest power grid company in Norway.
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, +358 10 618 0266, patrik.marckert@nib.int
Arild Moen, Associate Director, Communications, +358 10 618 0496, arild.moen@nib.int
