All agreed loans

Finland. Suur-Savon Sähkö Oy

Date of loan: 10 Sep 2013
Country: Finland
Customer: Suur-Savon Sähkö Oy
Amount in EUR: EUR 18 million
Maturity: 12 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Project

The loan has been provided for replacing 550 transformer substations and 950 kilometres of overhead electrical power cables with underground cables in eastern Finland.

Suur-Savon Sähkö aims to replace its 20kV medium voltage overhead cables with underground cables, which are less subject to damage from severe weather conditions. The importance of the project became more evident after the storms that caused considerable damage at turn of the year 2011/2012.

The benefits are mainly savings from lower operations and maintenance costs as well as event-related repair costs due to damage from severe weather impacts. Maintenance costs are expected to be reduced by 60 per cent and the faults, including repair services, are estimated to be lowered from 75 to 30 hours annually.

The network upgrade will also increase distribution capacity.

The Finnish utility company Suur-Savon Sähko provides electricity and district heat to over 100,000 customers in eastern Finland. The company employs about 270 people and is owned by 18 municipalities (58.8%), four parishes (5.4%), 20 societies and companies (29.3%), and 342 individuals (6.5%).

Fulfilment of NIB's mandate

Enhanced security of supply can result in increased productivity and less inconvenience for customers, a mix of households and corporations, improving the efficiency of the economy. Business activities have become increasingly sensitive to disturbance in the power supply. During extended power outages public safety might also be at risk in case of disturbances in telecommunications or in institutions such as hospitals or water treatment plants.

Sustainability summary

Replacing overhead power lines with underground cables is not seen as having any major negative impacts on the environment.

Press release

NIB rahoittaa sähköverkon parannustöitä Itä-Suomessa

 

Press release

NIB-lån tryggar elförsörjning i svåra väderförhållanden