The loan will help fund construction of a new power plant and tunnel network, as well as the installation of a new turbine wheel that will use water as lubrication instead of oil at an existing project. In addition, a new transformer station will be installed to support the increased power production and prepare for new access to the central transmission network.

“NIB’s loan to Agder Energi AS provides the regions with a broader supply of electricity in an environmentally friendly way, conforming with NIBs mandate,” says Henrik Normann, NIB President and CEO.

The loan agreement has a maturity of 14 years. The project is expected to help raise the annual production capacity by 175 GWh.

Majority-owned by 30 local municipalities, Agder Energi AS is the fourth largest hydroelectric producer in Norway. Overall, the company’s operations include the production, distribution, and sale of hydropower and energy-related services.