The Nordic Investment Bank (NIB) has signed a five-year loan with the Finnish electricity distributor Elenia Verkko Oyj to finance the company’s investments to extend and refurbish the electricity networks in the southern and central parts of Finland.
The EUR 100 million loan will finance part of the company’s investment programme, which is designed to improve the security of supply and enable green transition. The Electricity Market Act states that the quality requirements should apply to 100% of customers by the end of 2036 and accordingly power needs to be restored within six hours in zoned areas, and within 36 hours in other areas.
The investment programme focuses on replacing old overhead lines, which are at the end of their useful lives, with underground cabling and enabling electrification of society. Underground cabling will significantly reduce power outages caused by exceptional weather events and thus improve security of supply. The investments will improve the reliability of the electricity network and increase capacity.
“Secure and reliable electricity networks are crucial for our societies, and we are pleased to support investments in these. NIB’s new partnership with Elenia helps to build resilient infrastructure and connect more renewable energy capacity to the Finnish grid,” says André Küüsvek, NIB President and CEO.
“Fluctuations in electricity production and consumption as well as increasing demand for flexibility services emphasise the role of the electricity networks. Approximately 65% of our network is now underground as we focus on modernising the ageing electricity network and creating new, versatile electricity network services for our customers,” says Tommi Valento, CFO of Elenia.
The borrower, Elenia Verkko Oyj owns, operates and develops distribution networks in Finland. The company is the second largest distribution system operator in Finland and it provides services to 440,000 customers in more than 100 municipalities in Kanta-Häme and Päijät-Häme, Pirkanmaa, Central Finland, South Ostrobothnia and North Ostrobothnia.
