Norway. Å Energi AS
| Date of agreement: | 16 Sep 2024 |
|---|---|
| Country: | Norway |
| Customer: | Å Energi AS |
| Amount in NOK: | NOK 1 million |
| Amount in EUR: | EUR 85 million |
| Maturity: | 9 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
Project
The loan has been provided for building new grid lines and refurbishing existing ones during 2024–2026.
Å Energi has the ambition to invest up to NOK 20 billion, over the next 10-year period, in the grid sector via its subsidiary Glitre Nett. The 22 projects to be cofinanced by NIB consist of a portfolio of electricity grid projects, including substation projects, power line projects and a mix of both.
Eleven of these projects are greenfield projects, while eleven other projects are refurbishments or a blend of refurbishments and new investments. While some of the projects are being developed within the distribution grid, the majority are related to the regional grid.
The projects are being developed in the counties of Agder and Buskerud, including Bjorbekk, Ramslandsvågen, Tollboden, Skollenborg, Spikkestad and Sundland.
Å Energi was formed in December 2022 in a merger between Agder Energi and Glitre Energi and is based in Agder and Buskerud counties. The company produces 11.3 TWh of hydropower annually and serves about 320,000 grid- and retail electricity customers. Å Energi is Norway’s third largest hydropower company, and the second largest electricity distributor after Elvia, and is the largest business-to-business electricity sales company.
Fulfilment of NIB's mandate
The investment will enhance and strengthen the distribution networks in the counties of Agder and Buskerud in Southern Norway.
From 2024 to 2026, Å Energi will invest in approximately 22 projects to increase grid capacity by 16%, including investments in overhead powerlines and underground cables (4 km high-voltage lines for new industries and 54 km low-voltage lines) and upgrades or replacements of 15 to 20 substations.
Over the next decade, electricity demand is expected to increase by between 1,500 and 4,000 MW for new industries and between 100 and 150 MW for other end users. However, large industries will fully benefit from the new capacity only after comprehensive central network reinforcements by Statnett.
These investments are driven by societal electrification, primarily from new industries, charging infrastructure, and transport.
On the supply side, there is an increase in power plants applying for grid connections, mainly involving solar power, but also hydropower and large offshore wind projects. There is also an increase in applications for grid capacity from major consumers, including CO2 storage and hydrogen and ammonia production.
Sustainability summary
Å Energi has committed to the Science Based Targets initiative, targeting a reduction of absolute scopes 1 and 2 GHG emissions by 50% by 2030 from a 2019 base year.
