Finland. Elenia Verkko Oyj
| Date of agreement: | 10 Feb 2025 |
|---|---|
| Country: | Finland |
| Customer: | Elenia Verkko Oyj |
| Amount in EUR: | EUR 100 million |
| Maturity: | 5 years |
Project
The loan has been provided for the Finnish energy company Elenia Verkko Oyj to finance the company’s investments to extend and refurbish the electricity networks in the southern and central parts of Finland during 2024-2025.
The investment programme focuses on the replacement of medium voltage and low voltage overhead lines with underground cables. Underground cabling mitigates weather-related damages and is driven by climate adaptation.
The borrower, Elenia Verkko Oyj owns, operates and develops distribution networks in Finland. The company is the second largest distribution system operator in Finland. It provides services to 440,000 customers in more than 100 municipalities in Kanta-Häme and Päijät-Häme, Pirkanmaa, Central Finland, South Ostrobothnia and North Ostrobothnia.
Fulfilment of NIB's mandate
As a result of the project, the planned investments will improve the security of supply. Underground cabling will weatherproof the network and reduce power outages caused by exceptional weather events. In addition, the investments will strengthen the ageing network.
The company’s investment programme includes 551 new substations and refurbishing 950 substations that will increase the capacity by 305 MW to the grid.
A majority of the additional capacity in Elenia’s network is expected to be provided from wind power, which is one of the most sustainable ways of producing electricity. Approximately 975 GWh of wind power is expected to be connected by the end of the investment programme.
Sustainability summary
Elenia assesses the impact of its investments on nature and biodiversity as appropriate in cooperation with authorities, landowners and other relevant stakeholders. NIB has not identified any significant environmental or social sustainability concerns related to the investments.
