NIB finances upgrades to transmission grid in Finland
The Nordic Investment Bank (NIB) has provided a new 20-year loan to Finland’s transmission system operator Fingrid to finance the expansion and upgrade of the grid.
The EUR 100 million loan will provide long-term financing for Fingrid Oyj’s long term investment plan to strengthen the transmission grid in Finland.
Network ageing, electricity market development and the connection of new renewable energy production capacity are driving Fingrid’s investments. The planned upgrades will increase transformer capacity, reduce transmission losses and increase security of supply.
The planned projects include strengthening the transmission grid infrastructure in Northern Karelia, upgrading nineteen 110 kilovolt (kV) substations and six 400/110 kV substations, renewing the Olkiluoto 400 kV switchyard and doubling the capacity of the Isoniemi and Hirvisuo substations.
In addition, the investments include constructing new transmission connections to wind parks, enabling estimated 1,400 MW in total of wind power generation capacity to the network in the northern part of Finland.
“The projects included in the financing agreement will increase the reliability of the electricity transmission for the society, industry and promote Finland’s competitiveness,” says Henrik Normann, President & CEO of Nordic Investment Bank.
”We are very pleased with NIB’s continuous support and its latest decision to finance Fingrid’s core investments. These investments enable the transformation of the electricity system to accommodate increasing amounts of renewable energy generation and strengthen the network to keep Finland as one electricity price area.” added Jan Montell, Senior Vice President and CFO of Fingrid
Fingrid is a public limited liability company responsible for the transmission of electricity in the high-voltage transmission system in Finland. The system consists of over 14,000 kilometres of 400, 220 and 110 kilovolt transmission lines, and more than 100 substations. The power system is part of the inter-Nordic power system, and connected to Continental Europe, Russia and Estonia.
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.
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