NIB improves electricity security of supply in eastern Finland

Photo: Markus Sotikov

NIB has signed a 12-year loan agreement with Finnish energy company Pohjois-Karjalan Sähkö Oy to replace overhead electricity lines with underground cables to protect against severe weather conditions in eastern Finland.

The EUR 29 million loan will help Pohjois-Karjalan Sähkö replace 1,150 kilometres of overhead lines with underground cables and transfer 240 kilometres of overhead lines alongside roads.

The investment programme will upgrade one of the largest distribution networks in Finland and continue until 2017. The main benefit is improved security of supply to the company’s customers, of which the largest are heavy industry and municipalities that require constant, reliable electricity distribution.

Other benefits include savings from lower maintenance costs as well as event-related repair costs due to damage from severe weather impacts. The compensation the company has to pay to its customers from this kind of network damage is also expected to decrease.

As part of the investment programme, Pohjois-Karjalan Sähkö will also refurbish three power stations and approximately 1,000 old, pole-mounted transformers. These will either be replaced with pad-mounted transformers or equipped with oil spill protection.

The Finnish energy company Pohjois-Karjalan Sähkö Oy is primarily owned by the municipalities around the city of Joensuu in eastern Finland. The company operates in electricity generation, trading and distribution, as well as grid construction and maintenance. The company was founded in 1945 and employs about 300 people.

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
Mr Sami Loukkola, Senior Manager, Lending, at +358 50 311 3698,

Mr Arild Moen, Senior Communications Officer, at +358 10 618 0496,