NIB Supports Hydropower Expansion in Norway with EUR 42.8 Million Loan to SKL

NIB Supports Hydropower Expansion in Norway with EUR 42.8 Million Loan to SKL

(IN BRIEF) The Nordic Investment Bank (NIB) has signed a 7-year EUR 42.8 million loan agreement with Sunnhordland Kraftlag AS (SKL) to finance the modernization of the Løkjelsvatnet hydropower plant in Etne, Norway. Completed in October, the upgrade doubled the plant’s capacity from 29 MW to 60 MW and increased annual energy production by 20 GWh, bringing the total to approximately 163 GWh. The modernized facility enhances efficiency, supports peak demand, and strengthens energy security in the region. SKL, a major Norwegian power producer, operates 21 power plants and contributes significantly to the country’s renewable energy sector.

(PRESS RELEASE) HELSINKI, 14-Dec-2024 — /EuropaWire/ — The Nordic Investment Bank (NIB) has entered a 7-year loan agreement with Sunnhordland Kraftlag AS (SKL) to finance the modernization and expansion of the Løkjelsvatnet hydropower plant in Etne, Vestland County, Norway. The EUR 42.8 million (NOK 500 million) loan facilitates the plant’s capacity upgrade and extends its operational lifespan, ensuring a sustainable power supply for the region.

The Løkjelsvatnet plant, which had reached the end of its technical and economic lifecycle, has undergone significant upgrades, completed in October this year. The modernization doubled its installed capacity from 29 MW to 60 MW, resulting in an annual production increase of 20 GWh. The plant now generates approximately 163 GWh annually, contributing to the reliable and efficient supply of renewable energy.

Reconstructed as a modern mountain facility, the upgraded plant enhances operational efficiency and response times, enabling higher production during periods of increased market demand. This improvement supports Norway’s energy grid by providing critical system services and reinforcing the availability of consistent and regulated electricity, particularly during peak usage.

“This financing reflects NIB’s commitment to advancing energy security and supporting renewable energy development,” said André Küüsvek, NIB President & CEO. “Our collaboration with Sunnhordland Kraftlag ensures the long-term sustainability of hydropower infrastructure in Western Norway and contributes to the region’s electrification and energy reliability.”

Founded in 1946 and headquartered in Stord, Sunnhordland Kraftlag AS (SKL) is a prominent power producer in Norway, operating 21 wholly owned power plants alongside shares in other facilities, including Sima and Ulla-Førre. With a total capacity of 875 MW and an annual production of 175 GWh, SKL plays a key role in Norway’s renewable energy sector. Its largest shareholders include Haugaland Kraft (60%), Eviny (38%), and Stord Municipality (2%).

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.

Media Contact:

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

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

SOURCE: Nordic Investment Bank