The 16-year-maturity loan will help finance the construction of a new High Voltage Direct Current (HVDC) power connection across the Skagerrak strait, known as Skagerrak 4. The cable will be 240km long, of which 140km is under the sea bed, and will have a capacity of 700MW.

The new cable, scheduled for completion by the end of 2014, will improve the security of energy supply and increase power exchange with other countries, by allowing an increase in the export of Norwegian hydropower, and the potential increase in Danish wind power.

The upgrading of the 13km subsea cable across the Oslofjord is expected to be finalised by the end of 2012. The power cable, which has been in operation since 1981, secures the supply of electricity in the eastern regions of Norway and is important for the exchange of electricity with Sweden.

“Security of supply and environmental sustainability are key challenges for the energy sector in the Bank’s member countries and beyond,” said Johnny Åkerholm, NIB President and CEO. “We are pleased to be part of the Skagerrak 4 and Oslofjord power cable projects, which will enhance regional transmission of clean energy.”