NIB loan to strengthen Eastern Finland’s power grid

NIB has signed a 12-year financing agreement with Pohjois-Karjalan Sähkö Oy to provide funding for critical upgrades in the power distribution network in Eastern Finland. The EUR 40 million investment loan will increase the security of electricity supply and increase renewable energy generation in the area.

Pohjois-Karjalan Sähkö Oy is upgrading its power grid. The power grid upgrade project started in 2023, and it aims to improve the security of electricity supply and make it more reliable throughout the company’s power grid area.

With the upgrades, the company aims to enable increases in renewable energy generation. The power grid upgrades will be carried out between 2023–2026.

During the upgrade, current overhead lines – that are susceptible to failure – will be replaced by weatherproof underground cables. The overhead lines crossing the forests will be relocated to better maintenance connections. The grid’s substations will be renovated.

Between 2024 and 2027, the company is also investing in new smart meters. The new meters calculate and level the consumption of electricity in 15-minute intervals, which replace the previous hourly measuring system. The upgrade will link Pohjois-Karjalan Sähkö to the Finnish and European electricity market reform, which aims to calculate the consumption of electricity more accurately than before.

This is NIB’s third loan agreement with the company. The first was signed in 2015 to provide funding for the weatherproofing of the company’s power grids in Eastern Finland and the second in 2020 to modernise the hydropower plant of Kuurnan Voima, a subsidiary of Pohjois-Karjalan Sähkö.

Pohjois-Karjalan Sähkö Oy is primarily owned by North Karelian municipalities in Eastern Finland. The company operates in electricity generation, trading and distribution, as well as grid construction and maintenance. The company was founded in 1945 and employs around 350 people.

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 inside 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:
Kari Jaukkuri, Senior Banker, at +358 10 618 0237, kari.jaukkuri@nib.int

Anita Algus, Communications, at +358 10 618 0524, anita.algus@nib.int