All agreed loans

Norway. Tensio AS

Date of agreement: 4 May 2021
Country: Norway
Customer: Tensio AS
Amount in NOK: NOK 1,050 million
Amount in EUR: EUR 104.6 million
Maturity: 10 years
NACE sector / loan type: Transmission and distribution of electricity

Project

NIB is co-financing Tensio’s 2020-2022 investment programme to upgrade and expand its electricity grid and network in the County of Trøndelag. The investments will make it possible to add renewable energy capacity and improve the quality of infrastructure services and address current grid constraints enhancing security of supply.

The projects include the upgrade and capacity expansions of substations, regional grid and distribution network cabling, aimed at connecting new renewable energy generation assets, strengthening the resiliency of the grid and cater to a greater demand for energy, enable electrical transports and connect new residential areas. Tensio estimates that more than 750 MW of new renewable energy will be connected as part of these grid investments.

The total project cost is NOK 2,194 million, of which NIB is financing 48%.

Tensio AS operates the regional and distribution network in Trøndelag county in Central Norway. The Tensio Group was established in June 2019 with the founding of Tensio AS, which owns 100% of the shares in TrønderEnergi Nett AS and NTE Nett AS. Tensio AS is owned by NTE AS (40%) and TrønderEnergi AS (40%) and the pension fund KLP (20%). Tensio is the second largest power grid company in Norway.

Fulfilment of NIB's mandate

Productivity
In the ongoing transition of the power sector—with increasing capacity demand and integration of wind and solar power into the existing power system—the infrastructure need to adapt and accommodate to a rising share of decentralised and fluctuating power generation.

The expansion of the regional grid will enable connection of the largest on-shore wind power park in Europe—Fosen, which is partly financed by NIB—to the grid.

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

Environment
The Tensio investments will connect 759 MW renewable generation with a production capacity of 2.6 TWh annually.

Additionally, one of the objectives is to meet the increased capacity demands due to the general electrification of the society, e.g. charging infrastructure for vehicles.

Furthermore, a key climate change adaptation risk related to network is the vulnerability of overhead power lines compared to underground cables. In this project, 20% of the investments will be carried out as overhead power lines. The rest of the loan amount will be used for investments in underground cables, underwater cables and in substations. Thus, the investments are expected to contribute to a more climate resilient distribution system.

Sustainability summary

NIB has not identified any environmental concerns.

Press release

NIB finansierer oppgradering og utvidelse av elnettet i Trøndelag