The company will use the loan proceeds to build the new Iveland II hydropower plant on the river Otra of Kristiansand; and upgrade the Rygene run-of-the-river power plant on the Nidelva river south-west of Arendal.

The company has commenced construction of Iveland II, which is in proximity to the existing Iveland plant, in June 2013 and expects to complete it in the second quarter of 2016. Once built and operational, the plant is likely to increase Agder Energi’s annual production by 150GWh.

Iveland II will feature a new water intake with control gate, a 1.9km long new intake tunnel for water, a 44MW Francis turbine, a new outlet channel, generator, transformer station and power lines connecting to the existing grid.

The upgrade works at the Rygene plant will include replacing the turbine wheel, control & emergency systems, transformers, and renovating the generator that will increase efficiency in energy conversion by 5% or 13.6GWh to around 295GWh.

Agder Energi is likely to begin upgrade works on the plant, which has been operating since 1978, in autumn 2013 and complete in autumn 2015.

NIB president and CEO Henrik Normann said that these hydro power investments in the Nordpool region will contribute to securing supply and meet the demand, enabling efficient operations in the Nordic and Baltic region.