The island of Senja, Norway. The loan is expected to support the electrification of the Arctic region.
5 Jul 2021
NIB lends to grid upgrading investments in the Arctic Norway
NIB has signed a 7-year loan with the Norwegian grid operator and electricity distributor Arva AS to upgrade the power network and enhance its security of supply in the Arctic region.
The NOK 400 million (EUR 40 million) loan will allow Arva to build new power lines, cables, and sub-stations, but also refurbish the current grid solutions.
The investments will enable electrification of the region and address current grid constraints by enhancing the security of supply. There is a growing demand for reliable electricity system in the Northern Norway, especially with ports, fishing industries, and in the charging infrastructure for vehicles. The electrification will replace diesel-generated electricity, which will phase out a significant amount of carbon emissions caused producing it.
Arva’s grid investments have also enabled the connection of new renewable sources such as wind and solar power into the existing power system. Approximately 300 MW of renewable generation capacity has been connected to the grid as a result.
“We are delighted to provide financing to this Arva project, which both increases the region’s security of energy supply, and fosters the electrification of the major Arctic fishery in Norway”, says André Küüsvek, NIB President and CEO.
Arva AS is the sixth largest regional grid and distribution company in Norway, established from a merger between the grid operations of Troms Kraft (Troms Kraft Nett AS) and of Bodø Energi/Dragefossen (Nordlandsnett AS) on 19.12.2020. The company is headquartered in Bodø but also has an office in Tromsø, in the region where this project is carried out.
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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