Tunneldriving at Lysebotn 2. Photo: Lyse Energi AS.

Tunneldriving at Lysebotn 2. Photo: Lyse Energi AS.

11 May 2015

NIB funds high-capacity hydropower plant in Norway

Tunneldriving at Lysebotn 2. Photo: Lyse AS.

NIB has signed a 15-year-maturity loan with Norwegian power and telecommunication enterprise Lyse AS to finance the construction of a high-performance hydroelectric station in Rogaland County.

The NOK 950 million (EUR 113 million) loan will fund the construction of the hydropower plant Lysebotn 2, to be located inside a mountain at the end of the Lysefjord in the municipality of Forsand in Rogaland, southern Norway.

The surrounding river system is already regulated and adapted for hydropower generation. Since all the major construction work will be carried out inside the mountain, only minor environmental impacts are expected.

The 370 MW Lysebotn 2 is one of the largest hydroelectric power projects in Norway, and will replace the existing 210 MW Lysebotn 1 plant when commissioned in spring 2018. The annual electricity production is then expected to increase by 14% to 1,500 GWh.

Lysebotn 2 will use existing reservoirs and dams, but the increased hydraulic capacity will render production volumes more flexible, so fluctuations in wind power and price variations can be met more easily.

The new plant will include two Francis turbines with a capacity of 185 MW each, as well 7,800 metres of new water pipelines and new tunnels with a total length of 11,000 metres.

The considerably increased performance of the new power station will enable Lyse AS to provide electricity for 75,000 households and to support the efficient functioning of the electricity market.

“Improving the output of an already regulated watercourse ensures a stable electricity supply and balances demand, without making new encroachments into the surrounding natural habitat,” says Henrik Normann, President & CEO of NIB.

“Lysebotn 2 is the largest hydroelectric project that Lyse Group has completed, and fully developed the project will provide a significant production of renewable energy adapted to meet the future energy market. The cooperation with NIB contributes to a good financing solution for the project,” says Eimund Nygaard, CEO of the Lyse Group.

Lyse AS’ core business is the production of energy, stemming mainly from hydropower, as well as the provision of telecommunication products and related infrastructure. Its product range further includes natural gas, heat and refrigeration.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. 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
Yngve Söderlund, Senior Manager Lending, Origination, at +358 10 618 0239,

Lisa-Maria Altenberger, Communications Unit, at +358 10 618  234,