NIB offers €30m loan for construction of Østerbø hydropower plant in Norway
December 03, 2019 – Nordic Investment Bank (NIB) has agreed to provide a loan of €30m for Norwegian utility Sogn og Fjordane Energi for the construction of a new 47MW hydropower plant in Østerbø, Norway.
The loan will also finance a 20km regional power line that will link the plant’s power station to Stordalen in Masfjord municipality.
The project is expected to increase the local electricity supply security and expand production capacity to serve households and businesses in Western Norway.
To be located on the Sognefjord in the municipality of Høyanger, the Østerbø hydropower plant could generate a clean output of 165GWh.
The plant is expected to be completed in October 2022.
NIB stated: “The project is eligible for financing with NIB Environmental Bonds, as the plant has a water reservoir that allows it to store and balance fluctuating generation and demand patterns. Thus, the production can be maximised during peak load hours, which indirectly cuts greenhouse gas emissions more than in conventional run-of-river hydropower stations.”
The Østerbø hydropower plant will be owned by Sogn og Fjordane Energi (SFE) with 58% and BKK with 42%stakes. SFE has agreed to take on BKK’s share within six months of commissioning the plant.
Owning fifteen power plants, Sogn og Fjordane Energi has stakes in five throughout the Sogn og Fjordane region.
In April, NIB had agreed to provide €27.7m loan to inter-municipality company Hias IKS in Southern Norway, for the replacement of an outdated drinking water plant in Hamar, built in 1954. Construction on the project is expected to be completed in 2021.
The project will improve water quality, increase capacity and renew connecting pipelines and pumping stations.
Hias IKS will also build a full-scale biological phosphorus removal process based on biofilm carriers for its wastewater treatment plant in Ottestad. It will replace a chemical treatment step at the plant.