All agreed loans

Finland. Fingrid Oyj

Date of agreement: 17 Oct 2019
Country: Finland
Customer: Fingrid Oyj
Amount in EUR: EUR 100 million
Maturity: 20 years
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

Project

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:

  • Upgrading nineteen 110 kilovolt (kV) substations, and six 400/110 kV substations in the network. The substations are at the end of their technical life span, and the investment will increase the security of supply.
  • Upgrading the outdated Olkiluoto 400 kV switchyard to improve the security of supply.
  • Doubling the transformer capacities of the Isoniemi and Hirvisuo substations to better balance the supply and demand in the regions, and to increase the security of supply in affected regions.

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.

  • The 110 kV substation at Jylkkä will be expanded further and a third transformer installed. After these investments, the Jylkkä substation will be able to connect in total 1,000 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.

Fulfilment of NIB's mandate

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.

Sustainability summary

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.

Press release

NIB rahoittaa sähkönsiirtoverkon vahvistamista Suomessa

 

Press release

NIB finansierar uppgraderingar till överföringsnät i Finland