Nordic Investment Bank (NIB) and Norwegian energy group E-CO Energi Holding have signed a long-term loan agreement of NOK1.8bn (€185m) to finance the construction of three hydroelectric power stations and the expansion of an existing power plant in Norway.
The loan will be disbursed in two equal tranches with maturities of 10 and 12 years, respectively.
It will finance the construction of Rosten, Nedre Otta and Tolga – three medium-sized hydropower stations located on Norway’s longest river, the Glomma.
The run-of-the-river hydropower plants are a sustainable way of generating renewable energy in an already regulated watercourse.
While the Rosten plant will increase annual hydropower production by 192GWh, the Nedre Otta and Tolga plants will add 315GWh and 205GWh respectively.
The loan will also finance the upgrade and expansion of the Vamma hydroelectric plant in Østold County, south of Oslo.
A new, 128MW Kaplan turbine will be installed, which will increase the plant’s annual power production by 230GWh.
NIB president and CEO Henrik Normann said: “The investments in hydropower will significantly increase the production of renewable energy in Norway, and ensure the security of supply.
“Hydroelectricity is one of the most mature technologies for renewable energy generation.”
Hydropower production at the river Glomma starts in South Trøndelag and ends in Fredrikstad in Østfold south of Oslo.
Nearly 10% of Norwegian hydropower is produced by the river system. The projects are eligible for NIB Environmental Bond financing.
E-CO Energi Holding is one of the major energy groups in Norway and its core activities are the ownership and management of hydropower plants and the development of renewable energy projects.
The company is owned by the city of Oslo.
Nordic Investment Bank, an international financial institution owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden, finances private and public projects in and outside the member countries.
Image: The Vamma hydropower plant. Photo: Courtesy of Nordic Investment Bank.