3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||20 Apr 2012|
|Customer:||E-CO Energi AS|
|Amount in NOK:||NOK 300 million|
|Amount in EUR:||EUR 39.8 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
|Business area:||Energy and water|
This loan contributes to climate change mitigation: 70%
TheEUR 39 million has been provided for financing E-CO Energi's investment into hydropower. The investment project covers three hydropower projects and includes the replacement of a dam construction, four new aggregates and a new hydropower plant. The new hydropower plant will replace a 40-year-old plant.
E-CO Energi is Norway's second largest producer of hydroelectricity with a mean annual production of 9.7 TWh, which equals 8% of Norway's total electricity production. The company owns and manages power plants in southern Norway and has also part ownership of some additional power plants. E-CO Energi is fully owned by the City of Oslo.
Financing of improved production of hydroelectric power is an important element of NIB's mandate. Hydropower is a clean, emission free and renewable source of energy. The alternative to strengthening existing dams in Norway would mean reduced hydroelectric power production and increased need for electricity production from fossil fuels and/or from nuclear production.
The project includes the replacement of a dam construction at Stolsvatn, the replacement of four turbines at the hydropower plant in Hol and the upgrading of the Rendalen hydropower plant, all subprojects located in Norway. Given that the additional electricity crowds out electricity based on fossil fuel, an indirect reduction of greenhouse gas emission can be recognised due to the project.