7 Nov 2019
EUR 150 million
Energy and water
|Date of agreement:||17 Oct 2019|
|Amount in EUR:||EUR 100 million|
|NACE sector / loan type:||Transmission and distribution of electricity|
|Business area:||Energy and water|
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 10%
NEB category: Transmission, distribution and storage systems
Amount disbursed: EUR 5 million
Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds
NIB is providing the loan for upgrading the a) transmission grid infrastructure and b) transmission connections to wind parks. The long-term financing from NIB will contribute to Fingrid's long term investment programme.
a) The investments in transmission grid infrastructure consist of network upgrades to the North Karelia region, which has significant hydropower production facilities. The upgrade will bring reductions in transmission losses comparable to adding 60–70 GWh of power production to the network. The project also involves:
b) The construction of transmission connections to enable wind parks will include a 110 kV substation at Simojoki and 10 kilometres of new 110 kV overhead line connecting approximately 400 megawatt (MW) of wind power to the grid.
Fingrid is a Finnish public limited liability company responsible for the transmission of electricity in the high-voltage transmission system in Finland. The system consists of over 14,000 kilometres of 400, 220 and 110 kilovolt transmission lines, and more than 100 substations. The power system is part of the inter-Nordic power system, and connected to Continental Europe, Russia and Estonia.
The investments will increase transformer capacity, reduce transmission losses, increase security of supply and enable an estimated 1,400 MW in total of windpower generation capacity to the network in the northern part of Finland.
The UN 2030 Agenda for Sustainable Development Goals—particularly goals 7, 9 and 13—provide the framework for Fingrid’s corporate responsibility.
Fingrid aims to reduce transmission losses by maintaining grid voltage as high as possible and making grid investments that improve energy efficiency.
Fingrid is a signatory to the energy efficiency agreement 2017–2025 of the Finnish energy services sector. The target is to improve the energy efficiency of operations by at least 6%.
In general, decarbonisation of energy generation will also decrease CO2 emissions related to transmission losses. In addition, a well-functioning transmission grid with sufficient capacity creates a basis for energy system transition and the electrification of economic activities.