14 Mar 2019
EUR 102.26 million
Financial institutions and SMEs
|Date of loan:||14 May 2012|
|Customer:||Kymenlaakson Sähköverkko Oy|
|Amount in EUR:||EUR 15 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
|Business area:||Energy and water|
This loan has a positive effect on the Baltic Sea environment: 100%
The EUR 15 million loan has been provided for financing the implementation of remote reading of energy metering.
Kymenlaakson Sähköverkko Oy, an electricity distribution company located in the south-eastern part of Finland, is carrying out a project to install a remote reading system including automated measurement and control of electricity consumption. The total cost of the project is EUR 30 million and it is estimated that approximately 102,000 consumption sites will be included in the remote reading system by the end of 2013, when the project is estimated to be finalised. The first meters have been installed already in 2011.
Kymenlaakson Sähköverkko is a subsidiary of Kymenlaakson Sähkö Oy which was founded in 1918. Kymenlaakson Sähkö Oy is an electricity utility operating in Kymenlaakso, South Karelia, Päijät-Häme and Uusimaa. The company's main businesses include distribution and supply of electricity. It currently has 13 shareholders, the largest of which is the City of Kotka.
The project is estimated to result in a decrease of electricity consumption by 30 GWh/year, resulting in a total decrease of greenhouse gases of 30,000 tonnes of CO2/year. Considering that NIB finances 50% of the project, NIB's loan contributes to a decrease of greenhouse gas emissions of approximately 15,000 tonnes of CO2 annually. The new readers do not themselves lower electricity consumption. However, it has been shown in several studies that when customers gain a better understanding of their electricity consumption, the consumption usually falls between 5%-10%.
The project will have positive effects on Kymenlaakson Sähköverkko Oy's costs for collecting information based on which to invoice its customers. The consumers' consumption patterns can be used to design services that incentivise. The competitiveness mandate is rated as excellent and the environmental mandate as good for the project.
Kymenlaakson Sähköverkko Oy is investing in a system for remote reading in energy metering. The instalment has begun in 2011 and all meters are to be installed within two years-time.
The key environmental advantage of the project is a projected decrease in use of electricity by Kymenlaakson Sähköverkko Oy's clients, as they gain better understanding on their electricity use and the energy invoicing will be based on real figures on consumed electricity instead of estimations. The decreased use results in decreased emissions from energy generation as it is estimated to crowd out the use of coal.