All agreed loans

Norway. Eidsiva Energi AS

Date of agreement: 26 Apr 2021
Country: Norway
Customer: Eidsiva Energi AS
Amount in NOK: NOK 500 million
Amount in EUR: EUR 49.8 million
Maturity: 10 years
NACE sector / loan type: Production and distribution of electricity

Project

NIB is providing the loan to finance an upgrade and expansion of Eidsiva Energi’s electricity networks to improve the quality of infrastructure services and current grid constraints in order to enhance the security of supply.

The total 2020-2022 investment programme is around NOK 1,355 million, 37% of which NIB will finance.

The investments include 750 km of low voltage (230-400V) power lines and 360 km of high voltage (10kV -22kV) power lines.

The purpose of the investments is to increase and secure the network capacity and further the electrification of Norway, as Elvia delivers the electricity to charging stations for private vehicles and public transportation.

Eidsiva Energi AS is Norway’s largest electrical grid company and has been a customer of NIB since 2007. Eidsiva is 50%-owned by Hafslund AS with Innlandet Energi Holding AS owning 49.41% and the Municipality of Åmot the remainder. Hafslund E-CO AS is owned by the City of Oslo.

Fulfilment of NIB's mandate

Productivity
The expansion of the regional grid will enable connection of new sources of generation to the grid, amounting to 336 MW of installed capacity. In the ongoing transition of the power sector with increasing capacity demand and the integration of wind and solar power into the existing power system, the infrastructure needs to adapt so it can accommodate a rising share of decentralised and fluctuating power generation which puts the electricity grids in a more centralised position than before.

The programme will especially support the continued electrification of society such as transport and the expansion of the industrial base by increasing access to and the reliability of electricity provision.

Electrification of the transport infrastructure is likely to cause capacity related problems in the distribution grid during peak demand. The power supply is an important contribution to the competitiveness of Norwegian society, based on almost 100% renewable sources, and the grid development will provide further capacity to absorb the generation potential.

Environment
The grid investments will connect 336 MW of renewable generation capacity and increase transmission of renewable energy by approximately 1.1 TWh per year. One of the objectives is to meet the increased capacity demands due to the general electrification of society, e.g., charging infrastructure for vehicles.

A key climate change adaptation risk related to network is the vulnerability of overhead power lines compared to underground cables. In this project, 24% of the electricity lines will be carried out as overhead power lines and the remaining part as underground cables. Thus, the investments are expected to contribute to a more climate resilient distribution system.

Expected environmental outcomes from the investment:
Additional renewable generation capacity connected: 336 MW
Additional transmission of renewable energy: 1.1 TWh/a

Sustainability summary

No significant negative environmental or social impacts have been identified in relation to the investment projects.

Press release

NIB finansierer oppgradering av elektrisk distribusjonsnett i Norge