The Nordic Investment Bank (NIB) has signed a 7-year loan agreement with power producer Sunnhordland Kraftlag AS (SKL) to finance the upgrade of the Løkjelsvatnet hydropower plant in Etne, Vestland County, Norway. The EUR 42.8 million (NOK 500 million) loan helps prolong the plant’s lifespan and increase its capacity and production.
The Løkjelsvatnet powerplant, which had reached the end of its technical and economic lifespan, has been reconstructed to increase its installed capacity from 29 MW to 60 MW. The upgrade, which was finalised in October this year, has resulted in an additional annual energy production of 20 GWh, bringing the total annual production to approximately 163 GWh.
The new power plant is a mountain facility that will improve efficiency and response time, enabling increased production when market demand is high.
The investment ensures the supply of critical power system services and public goods, as regulated hydropower is systemically important for providing consistent and reliable electricity, especially during peak demand.
“This loan strengthens energy security, extends the life of efficient hydropower plants, and boosts electrification in Western Norway. We greatly value our partnership with Sunnhordaland Kraftlag and look forward to our continued collaboration in securing a sustainable energy future,” says André Küüsvek, NIB President & CEO.
Sunnhordland Kraftlag AS (SKL) was established in Stord in 1946. The company’s main activity has always been power production. Currently, SKL owns and operates 21 wholly owned power stations and owns the Sima power plant (8.75%) in Eidfjord and the Ulla-Førre facilities (2.54%). In SKL is also a shareholder in 18 small power plants and owns 95% of Midtfjellet Vindkraft. SKL’s total capacity is 875 MW, with an annual production of about 175 GWh in a normal year. The largest owners of SKL are 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 S&P Global Ratings and Moody’s.
For further information, please contact
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
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