NIB funds six hydropower plants in Norway

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NIB funds six hydropower plants in Norway

Nordic Investment Bank (NIB), an international financial institution that finances projects in the Nordic and Baltic countries, has signed a 15-year loan with Norwegian power company Helgeland Kraft AS to finance six hydropower plants in Nordland County, Norway.

The plants will increase the security of supply and increase the generation capacity by 166 GWh to the Nasdaq (Nord Pool Spot) which runs the largest market for electrical energy in Europe, measured in volume traded (TWh) and in market share. More than 80% of the total consumption of electrical energy in the Nordic market is traded through Nord Pool Spot.

The NOK470 million (US$57 million) loan will fund the construction of five new hydropower plants in the Tosbotn project in the municipality of Brønnøy in the Helgeland region of Nordland County. The hydropower plants are Leiråa, Bjørnstokk, Tverråa, Storelva and Tosdalen. Total annual production will be 133 GWh. Construction started in May 2014, and the plants are scheduled to start operations between April 2016 and September 2017.

The sixth hydro power plant is Øvre Forsland, which is the last of four hydropower plants which has been built at the river Forslandselva in Leirfjord municipality in Helgeland. The plant was commissioned in March 2015 and officially opened in August 2015. Øvre Forsland generates 33 GWh annually.

Helgeland Kraft AS has 12 hydroelectric power plants with an annual production of 1,100 GWh. The utility is owned by 14 municipalities in the region of Helgeland in Nordland, where it distributes 6,000 GWh electricity to around 80,000 inhabitants through its 7,800 kilometer distribution network.

Henrik Normann, President & CEO of NIB, commented:

“Hydropower is one of the most mature technologies among renewable energies and has among the best conversion efficiencies of all known energy sources".

Ove Brattbakk, CEO of Helgeland Kraft, said:

"It has been important for us to show that it is possible to build hydropower plants that are both beautiful and adapts to the surrounding nature. We are proud of our hydropower projects in Tosbotn and Øvre Forsland, and that they qualify for a loan from NIB. NIB provides us with long term funding and is a new funding source for us”, s

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