The Nordic Investment Bank (NIB) and the Norwegian utility company Sogn og Fjordane Energi AS have signed a 15-year-maturity, EUR 34 million loan agreement to upgrade old overhead electric lines during the 2013–2015 period to increase distribution capacity and connections to new production units.
The upgrade and replacement project will enable the distribution of an increased production capacity to around 200 GWh annually.
“The investment is also expected to improve the security of supply and encourage further investments in new renewable energy”, says Henrik Normann, President & CEO of the Bank.
“At present, our network company has a substantial amount of project activity. Sogn og Fjordane is an area with a great potential for both hydro- and windpower, and therefore in the coming years we are implementing extensive investments to enable new power production, in addition to new consumption and necessary rehabilitation of the network”, says Mr. Martin Holvik, CFO of Sogn og Fjordane Energi AS.
Sogn og Fjordane Energi produces about 2,100 GWh of hydroelectricity annually, and operates a distribution network with 23,000 customers in Western Norway. The company is owned by Sogn og Fjordane County Council and eight neighbouring municipalities.
SOURCE: The Nordic Investment Bank (NIB)