The Nordic Investment Bank (NIB) and Norwegian utility company Sogn og Fjordane Energi AS have signed a €30 million, 15-year loan agreement to finance the construction of a new hydropower plant in Østerbø, as well as a 20km regional power line.
The new Østerbø hydropower plant, located on the Sognefjord in the municipality of Høyanger, will have a 47MW turbine and produce an annual electricity output of 165GWh. In addition, a 20km-long regional power line connecting the plant’s power station to Stordalen in Masfjord municipality will be installed.
The investment will increase the security of local electricity supply and add production capacity, serving households and businesses in Western Norway.
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.
Sogn og Fjordane Energi AS owns fifteen power plants and shares in five throughout the Sogn og Fjordane region. The company is headquartered in Sandane.