Norway. Sunnhordland Kraftlag AS
| Date of agreement: | 12 Dec 2024 |
|---|---|
| Country: | Norway |
| Customer: | Sunnhordland Kraftlag AS |
| Amount in NOK: | NOK 500 million |
| Amount in EUR: | EUR 42.8 million |
| Maturity: | 7 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
This loan contributes to climate change mitigation: 100%
Project
The loan has been provided to finance the upgrade of the Løkjelsvatnet powerplant.
These development has increased the installed capacity to 60 MW from 29 MW.
The power station is designed to produce around 163 GWh per year.
Sunnhordland Kraftlag AS (SKL) was established in Stord in 1946. The company’s main activity has always been power production. Currently, SKL owns and operates 21 wholly owned power stations and owns the Sima power plant (8.75%) in Eidfjord and the Ulla-Førre facilities (2.54%). In SKL is also a shareholder in 18 small power plants and owns 95% of Midtfjellet Vindkraft. SKL’s total capacity is 875 MW, with an annual production of about 175 GWh in a normal year. The largest owners of SKL are Haugaland Kraft (60%), Eviny (38%), and Stord Municipality (2%).
Fulfilment of NIB's mandate
Productivity
The upgrade includes new infrastructure, such as an intake gate, to improve efficiency and response time, allowing for greater production when market demand is high. The catchment area and reservoir capacity remain unchanged.
The investment ensures the supply of critical power system services and public goods, as regulated hydropower is systemically important for providing consistent and reliable electricity, especially during peak demand.
Environment
The Løkjelsvatnet powerplant had reached the end of its technical and economic lifespan and has been reconstructed. This upgrade has resulted in increased flexibility and an additional energy production of 20 GWh per year due to the increased installed capacity.
The estimated annual CO2 savings are around 6,700 t CO2 equivalents.
Sustainability summary
SKL aims to reduce scope 1 (direct emissions) and scope 2 (indirect) emissions by 55% by 2030 and is working on improving its reporting and reduction of scope 3 (all other indirect emissions in its value chain) emissions.
SKL also focuses on reducing its biodiversity footprint and has identified climate change, pollution, biodiversity, and circularity as material topics for its sustainability efforts.
