Øvre Svultingen hydropower plant before and after the refurbishment

6 May 2016

NIB finances improved electricity distribution capacity in Norway

Øvre Svultingen hydropower plant before and after the refurbishment
Photo: Courtesy of Sunnfjord Energi

NIB and the Norwegian utility company Sunnfjord Energi AS have signed a 15-year-maturity agreement to increase distribution capacity, invest in automatic electricity meters and finance the refurbishment of a hydropower plant.

The NOK 130 million (EUR 13.6 million) loan agreement will increase the security of supply and reduce operational costs. The investment allows up to 400 GWh of new renewable electricity production to connect to the national grid, mostly from small hydropower plants.

The project will also finance the purchase and installation of automatic electricity meters to centralise Norway’s electricity market data to improve efficiency and transparency. The rollout is scheduled for completion by 1 January 2019.

The loan will also help finance the refurbishment of the Øvre Svultingen hydropower plant in Høyanger municipality in Sogn og Fjordane county. The plant was commissioned in April 2015, and production has since increased to 31 GWh annually from the previous 26.6 GWh. The plant has received a new water intake gate and grate, a refurbished water pipeline and a new 6.3 MW Francis turbine, including a generator and control equipment. The plant was constructed with a 4.3 MW turbine in 1942.

“This loan agreement gives us a greater degree of long-term financing of our core business”, says CEO Fredrik Behrens of Sunnfjord Energi.

Sunnfjord Energi operates ten hydropower plants with a total capacity of 146 MW and average annual production of 517 GWh. The utility distributes to 15,000 customers, and owns 50.8% of a optical fibre cable network company with 14,000 customers. Sunnfjord Energi operates on the west coast between Bergen and Ålesund and has 150 full-time employees.

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 Yngve Söderlund, Senior Manager Lending, Origination, at +358 10 618 0239,
Mr Arild Moen, Senior Communications Officer, at +358 10 618 0496, 

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