NIB lends to hydropower and electricity distribution in Norway

NIB has signed a 10-year loan of NOK 600 million (EUR 56.10 million) with Norwegian energy company Agder Energi AS to construct the Fennefoss hydropower plant in the Otra river, and to replace three switching stations as part of upgrading the regional distribution network in southern Norway.

The new Fennefoss hydroelectric power station will have an annual capacity of 9.9 MVA and an estimated annual production of 60 GWh, representing 2% of what Agder Energy already produces in the Otra. The Otra river is a 245-kilometre long river system starting north east of Stavanger and Lysebotn 2, and flowing into the sea at Kristiansand in the south. The river system contains 11 hydropower plants.

The extraction of additional hydropower from an already exploited and regulated river is one of the most sustainable ways to produce renewable electricity.

In addition, Agder Energy will replace three switching stations, contributing to securing the utility’s ongoing production and to somewhat increasing the production potential.

The Laudal switching station requires an upgrade to secure the production of 146 GWh in the Mandalsvassdraget. The upgrade of Finså power station in the municipality of Sirdal will secure the production of 154 GWh, and increase a production potential of around 4-5 GWh. The upgrade of Høgefoss power station and transformer station will ensure the production of approximately 150 GWh and paves the way for a future increase in production potential.

The investments are expected to increase the production capacity, maintain the security of supply, and contribute to a more efficient use of hydropower resources.

Agder Energi AS is the fourth largest producer and distributor of electricity in Norway and the third largest electricity supplier. The company’s activities also comprise district heating and sales of electricity-related services. The main part of Agder Energi’s operations are located in the Agder region in southern Norway.

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.

For further information, please contact
Mr Yngve Söderlund, Senior Manager Lending, Origination, at +358 10 618 0239, yngve.soderlund@nib.int

Mr Arild Moen, Senior Communications Officer, at +358 10 618 0496, arild.moen@nib.int