14 Dec 2020
EUR 56.10 million
NIB and the Norwegian energy group E-CO Energi Holding AS have signed a long-term loan agreement of NOK 1.8 billion (EUR 181 million) to finance the construction of three new hydroelectric power stations and the expansion of an existing power plant in Norway.
The loan will be paid out in two equal tranches with maturities of ten and twelve years respectively. It finances the construction of Rosten, Nedre Otta and Tolga: three new, medium-sized hydropower stations located on Norway’s longest river, the Glomma. These are run-of-the-river hydropower plants, which are a sustainable way of generating renewable energy in an already regulated watercourse.
The new Rosten plant will increase annual hydropower production by 192 GWh, while Nedre Otta and Tolga will add 315 GWh and 205 GWh respectively.
Further, the loan will finance the upgrade and expansion of the existing Vamma hydroelectric plant in Østold County, south of Oslo. A new, 128 MW Kaplan turbine will be installed, which will increase the plant’s annual power production by 230 GWh. This will also allow for the use of currently unutilised river flow potential.
“The investments in hydropower will significantly increase the production of renewable energy in Norway, and ensure the security of supply. Hydroelectricity is one of the most mature technologies for renewable energy generation”, says Henrik Normann, NIB President & CEO.
Hydropower production at the river Glomma starts in South Trøndelag and ends in Fredrikstad in Østfold south of Oslo. Approximately 10% of Norwegian hydropower is produced by the river system.
The projects are eligible for NIB Environmental Bond financing.
E-CO Energi Holding AS is one of Norway’s leading energy groups. Its core activities are the ownership and management of hydropower plants, and the development of renewable energy projects. The company is 100% owned by the city of Oslo.
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.
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