15 Feb 2023

NIB financing improves security of electricity supply in Iceland

The Nordic Investment Bank (NIB) and Icelandic energy company RARIK ohf. (Iceland State Electricity) have signed a EUR 20 million loan agreement to finance the replacement of overhead electricity lines with underground cables to increase security of supply in rural and urban areas of Iceland during 2022-2024.

The 15-year loan will secure the financing of RARIK’s investments made in both the rural and urban electricity distribution systems and transformer stations during 2022-2024. RARIK aims to transform all of its distribution system from overhead lines to underground cables by 2035.

Increased use of underground cables instead of overhead lines weatherproofs the network and makes it more energy efficient. Thus, the investment project will improve security of supply by reducing the likelihood of electricity downtime caused by, for instance, weather-related disturbances.

“RARIK has been driving the electrification of Iceland for over 75 years, and thanks to their continued effort in building an extensive and reliable power transmission and distribution system, more and more people can benefit from the increased security of supply it brings,” says André Küüsvek, NIB President and CEO.

RARIK ohf. (Iceland State Electricity) is an Icelandic state-owned distribution system operator (DSO). The company’s main objective is distribution of electric power, and it has gradually been working on building distribution networks in rural areas of Iceland.

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. www.nib.int

For further information, please contact

Kari Jaukkuri, Senior Banker, Public Sector & Utilities at +358 10 618 0237, Kari.Jaukkuri@nib.int

Iiris Anttalainen, Associate Communications Officer, at +358 10 618 0258, Iiris.Anttalainen@nib.int

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EUR 20 million