NIB lends to improve grid efficiency and resiliency in Arctic Norway
The Nordic Investment Bank (NIB) has signed a 7-year loan with the Norwegian distribution grid operator Arva AS to improve the efficiency and resilience of the electricity distribution network in Northern Norway.
The NOK 500 million (EUR 43.70 million) loan is part of NIB’s Arctic lending and will co-finance Arva’s investment programme for 2023-2024. The investments are expected to increase its distribution capacity between 50-100 MW, representing a 10% increase from the current capacity. The objective is to meet the increased capacity demands due to the electrification of society, e.g. charging infrastructure for vehicles, ports and fish-farms.
The loan from NIB will finance the construction of new power lines, cables and sub-stations, and the refurbishing of older infrastructure. In total, some 110 kilometres of power lines and cables will be installed. The upgrade includes five substations adding a capacity increase of around 30 MVA.
“Investments in electricity grids play a crucial role in enabling electrification and driving economic growth. We are proud to support Arva and co-finance their projects. These grid improvements are of particular significance as they enhance the infrastructure resilience in the Arctic region of Norway,” said Patrik Marckert, Senior Banker, Public Sector & Utilities at NIB.
In 2021, Arva signed a NOK 400 million loan with NIB for its 2020-2022 investments to strengthen the electricity distribution network in Northern Norway.
Arva AS is the sixth largest distribution grid operator in Norway, established from a merger between the grid operations of Troms Kraft and Bodø Energi in 2020.
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.
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