All agreed loans

Finland. Fingrid Oyj

Date of agreement: 8 Dec 2011
Country: Finland
Customer: Fingrid Oyj
Amount in EUR: EUR 20 million
Maturity: 15 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and water

Project

The second 15-year-maturity loan totalling EUR 20 million has been provided for the construction of a 170-kilometre electricity interconnection between Estonia and Finland, Estlink 2. The new link will be the second power bridge between the Baltic countries and the Nordic region.

Of the entire length of the cable, 145 kilometres will be laid as a sea cable on the seabed, 14 kilometres as an overhead line in Finland and 11 kilometres as a land cable in Estonia. Once the new 650 MW link is in operation in 2014, the capacity of the interconnection between Estonia and Finland will increase up to 1000 MW. The increase of the transmission capacity is one of the preconditions for the integration of the future power market between the Baltic countries and Nord Pool Spot.

Fingrid, established in 1996, is the sole national electricity transmission system operator in Finland. The company owns the Finnish main grid and all the significant cross-border connections. Currently, Fingrid has approximately 14,000 kilometres of transmission lines and 106 substations. Fingrid is responsible for the transmission of electricity in Finland and for maintaining and developing the infrastructure relating to the transmission of electricity. Fingrid is owned by the Republic of Finland (53%), Mutual Pension Insurance Company Ilmarinen (20%), Varma Mutual Pension Insurance Company (12%) and other insurance companies (15%).

Fulfilment of NIB's mandate

Launching Estlink 2 will be a big step towards an open electricity market, as it will create sufficient connection capacities between the Baltic and Nordic networks and will enable the integration of future power markets between the Baltic Member States and Nord Pool Spot. Both the competitiveness mandate and the environmental mandate are rated as excellent for the project.

Sustainability summary

The main environmental impacts will occur during the construction phase. These are mainly related to the underwater cable laying process which causes temporary changes in water quality.