NIB finances automatic meters and network investments in Norway

NIB has signed a 15-year loan agreement with the Norwegian utility BKK AS to co-finance automatic meters and investments in distribution, regional and transmission networks.

The NOK 1,545 million (EUR 164 million) loan will finance investments in regional net installations to improve the security of supply and connect new renewable power production facilities as well as oil and gas industry platforms. BKK will also invest in new distribution network installations during 2016–2019. A majority of the investment relates to installing connection points for new clients.

In addition, BKK will purchase and install automatic electricity meters as part of a national plan to centralise Norway’s electricity market data. This is expected to improve the efficiency and transparency of the electricity market. The rollout of smart meters is scheduled for completion by 1 January 2019.

Furthermore, the loan will help finance a new 420 kV transmission line from Mongstad to Kollsnes. The transmission line runs for 12 kilometres overhead and 31 kilometres underwater, crossing Hjeltefjorden and Lurefjorden. The transmission line will allow more connections from the transmission network to regional networks. The line will initially be operated by BKK, but will transfer to Statnett within five years in accordance with Norway’s strategy for electricity networks.

BKK was established in 1920 and is one of the leading electricity companies in Norway. With 35 wholly and partly owned power plants, the company produces 6.7 TWh annually and serves about 180,000 customers through its distribution network. In addition, the company offers district heating and telecom services.

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, yngve.soderlund@nib.int

Mr Arild Moen, Senior Communications Officer, at +358 10 618 0496, arild.moen@nib.int