Energinet and NIB Sign Loan Agreement for Substation Refurbishment and Upgrades in Denmark

Energinet and NIB Sign Loan Agreement for Substation Refurbishment and Upgrades in Denmark

(IN BRIEF) The Nordic Investment Bank (NIB) has agreed to a 10-year loan agreement worth DKK 1 billion (EUR 134.4 million) with the Danish TSO Energinet to finance the installation of new substations and refurbishment or upgrade of existing substations in Denmark between 2023 and 2025. The loan will co-finance the installation of ten new substations and the refurbishment or upgrade of 45 existing substations in accordance with the government-approved Energinet investment and financing plan for 2023-2025. The total amount to be invested in new and refurbished substations during 2023-25 is DKK 6.19 billion, with NIB financing approximately 16%. The investment will strengthen Denmark’s network resilience, reduce outage times, and prepare the network for further roll-out of intermittent renewable energy, while also supporting the electrification of industry and society in Denmark and other NIB member countries. Energinet is responsible for providing safe energy to Denmark’s citizens, businesses, and institutions and had previously signed two ten-year loans with NIB to co-finance the construction of the Viking Link, a high-voltage, direct current electricity interconnector between Denmark and Great Britain.

(PRESS RELEASE) HELSINKI, 13-Apr-2023 — /EuropaWire/ — NIB agrees a 10-year loan agreement with the Danish TSO Energinet to finance the installation of new substations and the refurbishment or upgrade of existing substations in Denmark between 2023 and 2025.

The DKK 1 billion (EUR 134.4 million) loan will co-finance the installation of ten new substations and the refurbishment or upgrade of 45 existing substations in Denmark, in accordance with the government approved Energinet investment and financing plan for 2023-2025.

The total amount to be invested in new- and re-furbished substations during 2023-25 is DKK 6.19 billion, of which NIB will finance approximately 16%. Substation investments will generally strengthen Denmark’s network resilience, reduce outage times, and prepare the network for further roll-out of intermittent renewable energy.

The grid capacity investment will also enable and support the electrification of industry and society in Denmark and other NIB member countries.

”This investment will contribute to Denmark’s energy supply security and operational efficiency in the transmission grid, which is a critical infrastructure and a key prerequisite for the transformation towards a greener Denmark,” says André Küüsvek, NIB President and CEO.

Energinet owns and operates the overall electricity and gas network in Denmark and is responsible for providing safe energy to the country’s citizens, businesses, and institutions. Energinet was established in 2005 and is an independent, public company under the Ministry of Climate, Energy, and Utilities.

“NIB has been a valued partner for many years and Energinet is therefore pleased that NIB is once again contributing to supporting Energinet’s ambitions in the green transition,” says Torben Thyregod CFO of Energinet.

Previously, NIB and Energinet signed two ten-year loans for co-financing the construction of the Viking Link, a 760-kilometre, 1.4 GW high-voltage, direct current electricity interconnector between Denmark and Great Britain.

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 in 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. Visit us at www.nib.int.

Media Contact:

NIB
Søren Hovgaard
Country Lead Denmark, Senior Advisor
+45 4081 3575
Soren.Hovgaard@nib.int

Sebastian Påwals
Director of Public Sector & Utilities
+358106180527
Sebastian.Pawals@nib.int

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

Energinet
Jesper Nørskov Rasmussen
Pressechef
+45 23 33 85 75
jnr@energinet.dk

Morten Falkesgaard Jørgensen
Senior Manager
+45 23 33 89 23
mfa@energinet.dk

SOURCE: Nordic Investment Bank