The Nordic Investment Bank (NIB) has agreed to loan Norwegian energy company E-CO Energi NOK300M (EUR39M) for investments in hydropower.

The 15-year maturity loan will help finance three hydropower projects, which include the construction of a new dam, four new aggregates and a new hydropower plant. The new plant will replace an existing 40-year-old plant.

“Financing a more efficient production of hydroelectric power is an important element of NIB’s mandate. Hydropower is a clean and renewable source of energy and therefore we are pleased to take part in financing these investments,” says Henrik Normann, NIB President and CEO.

E-CO Energi is Norway’s second largest producer of hydroelectricity with a mean annual production of 9.7TWh, which equals 8% of Norway’s total electricity production. The company owns and manages power plants in southern Norway and also has part ownership of some additional power plants. E-CO Energi is fully owned by the Municipality of Oslo.