Nordic Investment Bank (NIB) has granted a EUR30 million (US$33.27 million) loan financing to Sogn og Fjordane Energi AS (SFE) to finance the construction of a new hydropower plant in Østerbø in the municipality of Høyanger, as well as a 20-kilometer regional power line connecting the plant’s power station to Stordalen in Masfjorden municipality.
The Østerbø hydropower plant is greenfield and will have a 47MW turbine, projecting an annual electricity production output of 165 GWh.
The project is located on the Sognefjord, approximately 150 kilometers north of Bergen. The plant is scheduled for completion in October 2022.
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. Thus, the production can be maximized during peak load hours, which indirectly cuts greenhouse gas emissions more than in conventional run-of-river hydropower stations.
The Østerbø hydropower plant will be owned by SFE (58%) and by BKK (42%). SFE has agreed to take on BKK’s share within six months of commissioning the plant, subject to a request by BKK.
