NIB finances Statnett's Ofoten-Balsfjord power line in Norway

The Nordic Investment Bank (NIB) and Norwegian grid operator Statnett have signed a 15-year loan to partly finance a new 420 KV power line from Ofoten in Nordland to Balsfjord in Troms, Norway.

The 420 kV overhead transmission line is approximately 150 kilometres long and is scheduled for completion by 2018. The new power line will ensure security of supply and promote the establishment of new businesses as well as further industrial and economic growth.

The loan sum is NOK1,000 million (US120 million) and NIB has allocated the loan under its Arctic Lending facility. Statnett’s total project cost is expected to amount to NOK 3–4 billion (US$362 - 482 million).

The investment will significantly increase the transmission capacity in the region. This is required for security of supply reasons, something which is expected to become more pressing due to expected increases in both local power consumption and production of renewable energy over the coming years.