All agreed loans

Norway. Nord-Trøndelag Elektrisitetsverk Holding AS

Date of agreement: 16 Oct 2017
Country: Norway
Customer: Nord-Trøndelag Elektrisitetsverk Holding AS
Amount in NOK: NOK 340 million
Amount in EUR: EUR 36.5 million
Maturity: 15 years
NACE sector / loan type: Transmission and distribution of electricity
Business area: Energy and water

This loan contributes to climate change mitigation: 100%


The loan has been provided for financing 1) the construction of the Storåselva hydropower plant, 2) the rehabilitation of the Byafossen hydropower plant and 3) the reinforcement of the Namsvatnet dam in Nord-Trøndelag, Norway.

1. Nord-Trøndelag Elektrisitetsverk Holding AS (NTE) is constructing a new underground hydropower plant at Storåselva, in Skromoen, with a capacity of 25.5 MW. The company is also constructing a 55 metre wide and four metre high dam. The dam is situated near Mollansetra, which is some 16 kilometres from the city of Snåsa. The water will be transferred via a 3.1 kilometre tunnel to the power station. An 18-kilometre electricity network of 66 kv will connect the power plant to a sub-station in Vegset, in Snåsa. The hydropower plant is expected to be commissioned in June 2018.

2. NTE is also rehabilitating the old and inefficient Byafossen hydropower plant in the Municipality of Steinkjer. The power plant originally provided energy for a pulp mill at the site, which was established in 1896 and closed in 1992. NTE acquired Byafossen in 2007. Byafossen is scheduled to start operations in January 2018.

3. NTE is also replacing the Namsvassdammen hydro power dam in the Municipality of Namsos, in Norway. In 2005, the Norwegian Water Resources and Energy Directorate required NTE to upgrade the dam. NTE decided to construct a new dam adjacent to Namsvassdammen with a new water intake between the Lakes Namsvatnet and Vekteren. The new dam construction is located 80 metres downstream (north) from the existing dam. It is 330 metres long with a maximum height of 25 metres. The dam is expected to be ready in November 2018.

NTE is based in the middle of Norway. The utility was founded in 1919. Its main businesses include production, distribution and supply of electricity. The company also operates in the fibre infrastructure and electrical installation business.

Fulfilment of NIB's mandate

1.Construction of Storåselva hydropower plant:
The project will improve the security of supply and increase the generation capacity. Hydropower is one of the most mature technologies among renewable energies and has among the best conversion efficiencies of all known energy sources.

The annual generation of electricity is expected to be 75 GWh, leading to indirect reductions of greenhouse gas emissions.

2.Renewal of Byafossen hydropower plant:
The project includes the replacement of an old and inefficient plant by a new power plant which is expected to increase the annual production from 20 GWh to 35 GWh, implying a 75 percent increase in the expected production of the unit. This is about one percent of NTE’s total production.

The annual generation of electricity is expected to increase by 15 GWh, leading to indirect reductions of greenhouse gas emissions.

3.Replacement of the Namsvatnet dam:
The new dam ensures the continuation of around 45 percent of the company’s production of hydro- electricity to the Nordpool spot market. The dam accounts for around 20 percent (450 GWh) of the company’s total storage capacity.

The additional benefits provided by the new dam will be increased safety and improved water regulations, which benefit the eight hydropower plants utilising the water from the reservoir.

Sustainability summary

In order to optimise the generation at Byafossen hydropower plant from 31.4 to 34.8 GWh per year, NTE is removing about 8,000 m3 of sediment in the river directly downstream of the power station. The dredging will also create a more attractive river bed for the spawning of anadromous fish species such as salmon. The intention is to convert the river to national salmon water and the outlet from the turbine will be equipped with an electrical barrier, reducing the risk that fish migrate into the turbine. The dredged sediments will be deposited in an environmental authority approved landfill site.

Press release

NIB finansierer økt vannkraftkapasitet i Norge