17 Sep 2020
EUR 24.77 million
Financial institutions and SMEs
NIB and Kraftnät Åland Ab have signed a 30-year-maturity loan totalling EUR 60 million for financing a 160-kilometre subsea transmission cable between the Åland Islands and mainland Finland.
Kraftnät Åland is to build a 100 MW subsea cable in order to further ensure the energy supply in the Åland Islands. Currently 70% of the electricity used on the islands is transferred via a cable from Sweden. The new cable will also result in the possibility to close two fossil-fuelled reserve power units in Åland.
The new transmission cable will also be used as a route between the Finnish and Swedish energy markets and thus to help stabilise the Nordic electricity market. A further aim is to support the expansion of wind power projects in Åland in line with the plan to raise the share of wind generated energy from the current 25% up to 70% in the future. The cable can also be used for wind power generated electricity export from Åland to Sweden and Finland.
“Supporting the integration of the Nordic energy market and the increase of renewable energy production is well in line with NIB’s mandate,” says Henrik Normann, NIB President & CEO.
Established in 1997, Kraftnät Åland Ab is responsible for the transmission of electric energy in the Åland Islands. It owns and operates some 300 kilometres of transmission line and 18 substations. The company is owned by the Government of Åland.
The Nordic Investment Bank (NIB) is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing for projects that strengthen competitiveness and enhance the environment. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
For further information, please contact
Sebastian Påwals, Senior Manager, Origination, at +358 10 618 0527,
Kyra Koponen, Communications Officer, at +358 10 618 0297,