All agreed loans

Norway. Statnett SF

Date of loan: 19 Oct 2011
Country: Norway
Customer: Statnett SF
Amount in NOK: NOK 1,300 million
Amount in EUR: EUR 168.1 million
Maturity: 16 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Environmental effect

This loan contributes to climate change mitigation: 60%

Project

The loan has been provided for the partial financing of the Skagerrak 4 cable between Norway and Denmark and the upgrade of the existing cable crossing the Oslofjord between Teigen and Evje.

Statnett together with Danish Energinet.dk are investing in a new High Voltage Direct Current (HVDC) power connection, Skagerrak 4, between Norway and Denmark. The purpose of the new power cable is improved security of energy supply and increased power exchange with other countries. Skagerrak 4 will contribute to a more environmentally friendly European power market through export of renewable energy produced in Norway and a potential increase in wind power production in Denmark as a result of the cable. The project is scheduled for completion by the end of 2014. The cable will be 240 km in total, of which 140 km is under the sea bed. It will have a capacity of 700 MW.

The other project, the upgrading of the 13 km subsea cable across the Oslofjord between Teigen and Evje is expected to be finalised by the end of 2012. The power cable, which has been in operation since 1981, secures the supply of electricity in the eastern regions of Norway and is important for the exchange of electricity with Sweden.

Statnett is the Transmission System Operator of the Norwegian electric power system. It is a state enterprise owned by the Norwegian State through the Ministry of Petroleum and Energy. Statnett is responsible for all high voltage electricity transmission in Norway.

Fulfilment of NIB's mandate

The Skagerrak 4 cable to Denmark improves Denmark's ability to increase its energy production through wind mills since hydropower is the best way to replace wind energy when there is not sufficient wind. Further, it strengthens the security of energy supply for both Denmark and Norway. The subsea Oslofjord cable is important for the electricity exchange between Norway and Sweden. In addition, it is a vital part of the energy infrastructure system in the most densely populated part of Norway.

Sustainability summary

Statnett's HVDC cable from Norway to Denmark, crossing the Skagerrak strait, will have a slightly negative direct environmental impact. However, the indirect environmental impact is largely positive as it enables Denmark to use its wind-based electricity production better and to increase its share of the electricity portfolio generated by wind farms in the future. The Skagerrak 4 transmission line will in its entirety be built as a cable, on land and underwater, eliminating most negative environmental impact-related transmissions. There will be no negative impact on protected areas or endangered species and disturbance of contaminated sediments will be minimal. The Oslofjord cable will only have slight negative environmental impact when landing the cable at both sides of the Oslofjord.

Press release

NIB gir lån til Statnetts kabelforbindelser