All agreed loans

Sweden. Ellevio

Date of loan: 28 May 2018
Country: Sweden
Customer: Ellevio
Amount in SEK: SEK 1500 million
Amount in EUR: EUR 147 million
Maturity: 15 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Project

The loan has been provided to finance a power distribution modernisation program during 2017–2019.

NIB will finance Ellevio’s refurbishment and replacement of five thousand kilometres of low-, medium- and high-voltage overhead power lines and underground cables. A vast majority of the existing overhead lines will be replaced by underground cables.

The investments also cover the modernisation of substations, distribution transformers, medium- and high-voltage feeders, power transformers, transformer bays and buildings.

Ellevio is also in the process of connecting several large wind power installations, all based on national grid stations. Ellevio’s network investment for 2017–2019 totals SEK 6,959 million.

Ellevio AB is the second largest electricity distribution system operator in Sweden, in terms of numbers of customers. The company manages seven networks, serving all customers in the Stockholm area and in the central and western parts of Sweden. Ellevio is owned by OMERS Infrastructure (50%), Folksam (17.5%), AP1 (12.5%) and AP3 (20%).

Fulfilment of NIB's mandate

Productivity
The upgrade and expansion of the networks will improve the quality of infrastructure services and enhance security of supply. The project will especially support continued urbanisation. Households account for approximately 86% of the total number of connections in Ellevio’s network, most of which is located in the Stockholm region. Around 16,000 new customers are expected to be connected during project implementation. Reliability will be increased by cabling reducing outage time.

The program also comprises investments to prepare the network for receiving an increased amount of wind power.

Environment
The visual impact will be minimised due to the replacement of overhead power lines with underground cables.

Use of wind turbines is among the most sustainable ways to generate electricity. Indirectly, the wind power project contributes to lower emissions of carbon dioxide and other combustion emissions by crowding out electricity generated from fossil fuel. The full benefit of wind power would not materialise without connections to the electricity grid. Thus, such connections are as important as the windfarms.

Sustainability summary

Ellevio has identified 28 different aspects of the power distribution modernisation program. Currently, the top two key environmental issues are possible leakages from oil cables and the generation of waste from the projects. The most significant aspects set the basis for Ellevio’s environmental goals. Among others, robust procedures are in place to detect PCBs, to minimise waste generation, and to avoid negative impacts on the protected areas.

Press release

NIB beviljar lån för modernisering av Ellevios eldistribution