All agreed loans

Sweden. DNB Bank ASA

Date of agreement: 14 May 2013
Country: Sweden
Customer: DNB Bank ASA
Amount in EUR: EUR 61.4 million
Maturity: 15 years
NACE sector / loan type: Loan programme
Business area: Energy and water

This loan contributes to climate change mitigation: 100%

Project

The loan programme will finance DNB Bank ASA’s onlending to Jädraås Vindkraft AB and Hällåsen Kraft AB. The onlending will finance the construction of one of northern Europe’s largest onshore wind farms, in Jädraås west of Gävle in Sweden.

The project includes the acquisition and erection of 66 wind turbines of 3 MW each, and the main suppliers are Vestas, Vattenfall and ABB. The Jädraås wind farm will have a total annual production of 503 GWh of renewable energy.

Fulfilment of NIB's mandate

The electricity generated from the new wind farm will increase production capacity in Nordpool. This will place downward pressure on electricity prices. However, increased wind power adds to the costs of the energy system operators, as they need to take measures to balance supply and demand.

The project increases the physical capital of the energy company, and the estimated annual electricity production can grow by 503 MWh, depending on wind- and technical conditions. The green energy generated from the new wind farm also diversifies the energy mix and improves the security supply in the region. The project is in compliance with NIB’s mandate, obtaining an excellent environmental rating and a moderate competitiveness one.

Sustainability summary

Electricity generation from renewable sources, like wind, crowds out the supply of fossil fuel based energy, and thus reduces emissions of the greenhouse gas CO2. This project is expected to indirectly result in a total decrease of 500,000 tonnes of CO2 annually. 100% of the project qualifies as an environmental investment.

The main environmental issues are the consideration of sensible or protected areas and cultural heritage sites within the windmill farm, and the disturbance of neighbouring households due to light reflections and noise. Regulations and restrictions for the construction have been set to protect sensible areas. The closest house is 1.5 km from a turbine and protected by high forest.

Press release

NIB-lån finansierar stort vindparksprojekt i Sverige