3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||14 Jun 2016|
|Amount in NOK:||NOK 1,000 million|
|Amount in EUR:||EUR 107 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
|Business area:||Energy and water|
Arctic Financing Facility (read more): 100%
The loan has been provided for the construction of a new 420 kV power line from Ofoten in Nordland County to Balsfjord in Troms County.
The new power line will ensure security of supply and promote the establishment of new businesses as well as further industrial and economic growth. The line will also facilitate planned new renewable power production in the region.
The 420 kV overhead transmission line is approximately 150 kilometres long, affects seven municipalities and includes:
The project is ongoing and is expected to be ready by 2018.
The total project cost is expected to amount to NOK 3–4 billion.
Statnett is the transmission system operator (TSO) of the Norwegian electric power system. It is a state enterprise owned by the Norwegian State, through the Ministry of Petroleum and Energy. Statnett is responsible for all high-voltage electricity transmission in Norway.
The investment will significantly increase the transmission capacity in the region. The capacity increase is required for security of supply reasons, which are expected to become more pressing due to expected increases in both local power consumption and production of renewable energy over the coming years.
The project will have significant direct impacts on regional economic activities, and to some extent the entire Nordic electricity pool, where Norway’s hydropower resources are crucial in balancing supply and demand.
Locally, higher capacity will enable frictionless operations of the oil and gas industry where, for instance, the recent development of the Goliat offshore oil field requires a stable electricity supply.
On the production side, the significant potential for renewable and intermittent energy production can be efficiently used to reduce the use of valuable hydropower reservoirs under most load conditions.
This is a project with a potentially extensive environmental and/or social impact (category A, read more)
The risk that long-term exposure to power line fields may give rise to adverse health effects cannot be excluded. Statnett therefore is avoiding planning and constructing new installations close to housing areas, kindergartens and schools if the assessment level exceeds 0.4 μT.
The new 420 kV transmission line will be constructed alongside the existing 420 kV transmission, meaning that the area is already affected. Only a short part of the transmission line will be relocated to a pristine area not previously affected by transmission lines. Also, the towers will be erected using helicopters. Thus, very limited stretches of roads will need to be constructed within the scope of the project.
There are four different reindeer herding districts along the transmission line. Several types of restriction are part of the overall conditions of the project. Construction is limited in some areas during migration from winter grazing areas to summer grazing, and no construction will take place in certain areas during the calving season.