The Nordic Investment Bank (NIB) is providing a 10-year loan of NOK 1bn (approximately €93m) to Å Energi AS to support new hydropower plants and refurbishment work in southern Norway.
The financing will contribute to an investment programme with estimated capital expenditure of NOK 2bn. Combined, the new and refurbished plants are expected to increase annual electricity generation by around 130 GWh.
The programme includes construction of the Øygard and Kvernevatn hydropower plants in Åseral South in Agder, and the Skjeggedal plant in Åmli. It also covers refurbishment of the existing Høgefoss and Hofsfoss plants and approximately 6 km of new grid infrastructure.
The investments aim to expand generation, improve the efficiency of existing hydropower assets and strengthen the reliability of critical energy infrastructure.
Steffen Syvertsen, CEO of Å Energi, said: “Å Energi has high investment ambitions going forward within the core business activities hydro power production and power grid to maintain and supply high-quality critical infrastructure. We are happy to provide new production capacity to the markets. NIB is an important longstanding financing partner, making fundamental contribution to Å Energi to realize our strategic growth ambitions”
André Küüsvek, NIB President and CEO, commented: “Norway needs more power and better use of the hydropower resources that are already in place. These investments deliver both. By building new capacity and upgrading existing hydropower plants, Å Energi is helping to increase power generation and strengthen the resilience of the power system. These are the investments Norway needs to meet growing electricity demand and enable further electrification and value creation.”
Å Energi is Norway’s third-largest power producer, generating around 13TWh annually. It also owns and operates regional power grids serving approximately 423,000 customers. Headquartered in Kristiansand, the company was formed in 2022 through the merger of Agder Energi and Glitre Energi.
