Norway. Hafslund ASA
| Date of agreement: | 14 May 2024 |
|---|---|
| Country: | Norway |
| Customer: | Hafslund ASA |
| Amount in NOK: | NOK 1,000 million |
| Amount in EUR: | EUR 87 million |
| Maturity: | 10 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
This loan contributes to climate change mitigation: 100%
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Renewable energy
Amount disbursed: EUR 87 million
Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds
Project
The loan has been provided for financing 50% of an investment programme to rehabilitate dams and hydropower stations and control equipment in Norway.
In cooperation with Norwegian authorities, Hafslund has prepared a plan to upgrade several dams, starting with the most important assets such as Viddalen, Nyheller og Rødungen North.
The investments are critical both from climate change adaption perspective as well as in strengthening Norway’s renewable power generation potential by contributing to the dams’ lifetime extension of energy generation assets and increase in generation capacity.
As such, the NIB loan would support investments which are fully aligned with Norway’s ambition to increase the generation of renewable energy.
The Hafslund group consists of three business areas: Hydropower (Hafslund Eco Vannkraft), District heating and cooling (Hafslund Oslo Celsio) and Growth and investments (Hafslund Vekst). Hafslund Eco Vannkraft is Norway’s second largest hydropower producer with an installed capacity of 5.2 GW distributed across some 81 power plants mainly located in the south of the country. Hafslund Vekst tests and develops new business concepts and assists customers with advisory services. Hafslund Oslo Celsio, formerly Fortum Oslo Varme, is Norway’s largest district heating producer and supplies hot water for heating to more than 200,000 people who live or work in the greater Oslo region.
Fulfilment of NIB's mandate
Productivity
Due to increased risks of extreme weather, enhancing dam safety is crucial to prevent catastrophic impacts on the region and its power system. These upgrades are vital for ensuring a stable power supply and public safety.
Expected productivity impact
- Capex EUR million: 185
Environment
The project will also increase the annual production of renewable energy generation by 81 GWh, resulting in 17.3 kt of CO2eq per saving per year, according to the IFI Greenhouse gas emission accounting methodology.
Expected environmental impact:
- Renewable energy generation
- Three dams reconstructed
Sustainability summary
The project focuses on maintaining and improving the safety and environmental aspects of operational hydropower plants and dams, thus not expecting significant new local environmental impacts.
