NIB invests in Geothermal power production and distribution in Iceland
The Nordic Invesment Bank has signed a 15-year loan with Icelandic utility Orkuveita Reykjavikur to finance an investment programme to improve geothermal power production and electricity distribution networks in Iceland.
The US$80 million (โฌ67.52 million) loan will help finance new make-up and reinjection wells, new steam pipeline connections, a new workshop building as well as an expansion of the thermal station in Hellisheiรฐi geothermal power plant. The drilling of new make-up wells is a continuous activity to maintain the capacity of the geothermal power plants.
In the Nesjavellir geothermal power plant, the projects include new make-up wells, a complete control system update and replacement of equipment in the thermal stations.
The loan will also co-finance investments in the electricity distribution system, strengthening and replacing old equipment in the network, harbour electrification and the installation of smart meters. The electrification of the harbour area will allow for shore to ship electricity and thereby reduce the emissions from ships running on auxiliary diesel power when moored.
In 2006, NIB provided a loan to Orkuveita Reykjavรญkur to finance the construction of the Hellisheiรฐi Power Plant.
Orkuveita Reykjavรญkur provides electricity, district heating, cold water, sewage and fibre-optic cable network to customers in Southwest Iceland. In the key segments of power and heating it serves over half of Iceland’s population. The group owns and operates three power plants, the Nesjavellir and Hellisheiรฐi Geothermal Plants and the Andakรญlsรกrvirkjun hydroelectric station, with a combined capacity of 431 MW of electricity.
Orkuveita Reykjavรญkur is owned by Reykjavรญk municipality (93.54%), Akranes municipality (5.53%), and Borgarbyggรฐ municipality (0.93%).
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poorโs and Moodyโs.
