The Nordic Investment Bank (NIB) has signed a €30 million loan agreement with Norwegian energy company Sogn og Fjordane Energi AS (SFE) to support the upgrade of the Øksenelvane hydropower station. The 15-year loan will finance the construction of a new power station next to the existing facility.
Øksenelvane was one of the first major hydropower developments in the Sogn og Fjordane region over 70 years ago. The upgrade is part of a larger rehabilitation project and will enable continued electricity production during the construction period. The new station is expected to be completed in 2028.
Once operational, the upgraded plant will increase electricity production by 21GWh annually and nearly quadruple its capacity. This will enhance its ability to regulate power supply based on demand.
“The power market of the future, with an increasing share of non-dispatchable energy, will need large, flexible ‘batteries’ like the water reservoirs at Øksenelvane. One key reason why electricity production at this power plant can be quickly ramped up or down is that it discharges directly into the sea. In power plants where the water flows into a river after production, flexibility is more limited because it affects river ecosystems. With this project, Norway gains more flexible energy – in an area that has already been developed,” said SFE CEO Knut Arild Flatjord.
NIB President and CEO André Küüsvek added: “Partnering with SFE to upgrade the Øksenelvane power station strengthens a key contributor to Norway’s renewable energy supply. This ensures greater power reliability, especially during periods of lower wind and solar output in the Nordic region.”
SFE is one of the largest producers of renewable energy in Western Norway, with an average annual output of nearly 2.4TWh.
