Å Energi Secures NOK 1 Billion Loan from NIB for Power Grid Expansion in Southern Norway

Å Energi Secures NOK 1 Billion Loan from NIB for Power Grid Expansion in Southern Norway

(IN BRIEF) Å Energi has partnered with the Nordic Investment Bank (NIB) to secure a NOK 1 billion loan aimed at upgrading and expanding the electricity grid in Southern Norway’s Agder and Buskerud counties. The 10-year loan will finance 22 projects, including new grid lines and transformer stations, with a focus on supporting the region’s growing electrification needs. The projects align with Å Energi’s commitment to renewable energy and sustainability, while also supporting industrial growth. This partnership will enhance grid capacity, improve energy security, and contribute to Norway’s transition to a greener future.

(PRESS RELEASE) HELSINKI, 18-Sep-2024 — /EuropaWire/ — Å Energi, one of Norway’s leading hydropower and energy companies, has announced a landmark partnership with the Nordic Investment Bank (NIB) to enhance and expand its electricity distribution network across Southern Norway. The two entities have signed a 10-year loan agreement valued at NOK 1 billion (EUR 85 million), which will be utilized to modernize and extend power grids in the counties of Agder and Buskerud. This investment forms part of Å Energi’s ongoing efforts to bolster regional energy infrastructure and pave the way for a more sustainable, electrified future.

Strengthening Norway’s Power Grid

The investment focuses on the development of new grid lines, transformer stations, and the refurbishment of existing electrical infrastructure, aimed at increasing the reliability and capacity of the region’s power supply. Areas that will benefit from these improvements include Bjorbekk, Ramslandsvågen, Tollboden, Skollenborg, Spikkestad, and Sundland. These initiatives, scheduled between 2024 and 2026, will significantly improve the efficiency and resilience of the regional and distribution grids, which are essential for supporting the growing demand for renewable energy and electrification.

Of the 22 projects being co-financed by NIB, 11 are greenfield developments, while the remaining 11 are either refurbishments or a combination of upgrades and new installations. While a number of projects will focus on enhancing the distribution grid, the bulk of the work will center around the regional grid, further reinforcing the backbone of the power network in Southern Norway.

“We are very pleased with the new loan from NIB to finance these critical grid investments,” said Steffen Syvertsen, CEO of Å Energi. “This funding significantly contributes to our vision of empowering a renewable future, as strengthening the power grid is vital for accelerating the transition to sustainable energy solutions.”

Supporting Industrial Growth and Electrification

The increased capacity and efficiency from the grid improvements will facilitate further industrial growth in the region, creating a stable foundation for businesses reliant on consistent and sustainable energy sources. These enhancements come at a time when industries are looking to reduce their carbon footprints and embrace electrification, making the improvements essential for both economic and environmental progress.

“Å Energi’s investments are paving the way for a more robust and reliable power grid, crucial for the electrification of new industrial projects,” said Patrik Marckert, Senior Banker of Public Sector & Utilities at NIB. “These projects align with NIB’s mandate of financing initiatives that drive productivity improvements and environmental benefits in the Nordic and Baltic regions.”

A Leading Force in Hydropower and Energy Distribution

Å Energi, formed in December 2022 through the merger of Agder Energi and Glitre Energi, has rapidly become a key player in Norway’s energy sector. Producing 11.3 TWh of hydropower annually and serving 320,000 grid customers, Å Energi stands as Norway’s third-largest hydropower producer and the second-largest electricity distributor. Through its investments, Å Energi is committed to enhancing both energy security and sustainability, helping Norway achieve its environmental targets by strengthening its renewable energy infrastructure.

The collaboration with NIB represents another major step for Å Energi in its journey to lead the energy sector toward a renewable future, while ensuring that its grid infrastructure can meet the challenges posed by increasing energy demands, electrification, and a growing focus on environmental sustainability.

About Å Energi

Based in Agder and Buskerud counties, Å Energi is a major Norwegian energy company that produces hydropower and operates a robust electricity grid serving hundreds of thousands of customers. As a key player in the Norwegian energy market, Å Energi is focused on innovation, sustainability, and the growth of renewable energy production and distribution across the region.

About NIB

The Nordic Investment Bank (NIB) is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. NIB provides long-term financing for public and private projects that improve productivity and benefit the environment across the Nordic and Baltic regions. With its headquarters in Helsinki, NIB has played a critical role in supporting infrastructure projects and sustainable development initiatives since its founding in 1975. The Bank holds AAA/Aaa credit ratings from Standard & Poor’s and Moody’s.

For more information, visit nib.int.

Media Contacts:

Patrik Marckert
Senior Banker, Public Sector & Utilities
+358 10 618 0266
patrik.marckert@nib.int

Arild Moen
Associate Director, Communications
+358 10 618 0496
arild.moen@nib.int

SOURCE: Nordic Investment Bank