NIB finances Statnett's Ofoten-Balsfjord power line in Norway

Photo: Statnett
The Nordic Investment Bank (NIB) and Norwegian grid operator Statnett have signed a 15-year loan to partly finance a new 420 KV power line from Ofoten in Nordland to Balsfjord in Troms.

The 420 kV overhead transmission line is approximately 150 kilometres long and is scheduled for completion by 2018. The new power line will ensure security of supply and promote the establishment of new businesses as well as further industrial and economic growth.

The loan sum is NOK 1,000 million (EUR 106 million) and NIB has allocated the loan under its Arctic Lending facility. Statnett’s total project cost is expected to amount to NOK 3–4 billion.

The investment will significantly increase the transmission capacity in the region. This is required for security of supply reasons, something which is expected to become more pressing due to expected increases in both local power consumption and production of renewable energy over the coming years.

The project will have direct impacts on regional economic activities, and to some extent the entire Nordic electricity pool, where Norway’s hydropower resources are crucial in balancing supply and demand.

Locally, higher capacity will enable frictionless operations of the oil and gas industry where, for instance, the recent development of the Goliat offshore oil field requires a stable electricity supply.

On the production side, the significant potential for renewable and intermittent energy production can be efficiently used to reduce the use of valuable hydropower reservoirs under most load conditions. The line will also facilitate planned new renewable power production in the region.

Statnett is the transmission system operator of the Norwegian electric power system. It is a state enterprise owned by the Norwegian State, through the Ministry of Petroleum and Energy. Statnett is responsible for all high-voltage electricity transmission in Norway.

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, Origination, at +358 10 618 0239,

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