The financing will be used to renew hydropower facilities and install an additional turbine at an existing hydro power plant in Agder, Norway
The Nordic Investment Bank (NIB) has agreed to provide NOK600m ($65.6m) loan to Agder Energi to increase hydropower efficiency in Norway.
NIB has signed a 10-year loan agreement with Norway-based energy company Agder Energi for a hydropower project.
The financing will be used to renew hydropower facilities and install an additional turbine at an existing hydro power plant in Agder, Norway.
The project includes construction of a new dam, a hydro tunnel and an additional turbine at the Skjerka power station.
NIB said that the financing is expected to boost the production capacity by 60GWh per year, to maintain security of supply and to contribute to more efficient use of hydropower resources.
Norwegian energy company is building a new dam directly downstream from the old Langevatn dam and the new dam is 10 metres higher and is expected to increase the volume of the reservoir from 22 million cubic metres to 47 million cubic metres.
Agder Energi is building a new 7.2km long tunnel
NIB president and CEO Henrik Normann said: “The increased storage capacity, hydraulic capacity and generation will have a positive impact on the use of water resources and the management of downstream flows affecting a number of power units utilising the river system.”
Agder Energi is also building a new 7.2km long tunnel as the current 13 km long tunnel which connects the Langevatn dam to the Nåvatn reservoir is in poor condition and is at risk of collapsing.
The Skjerka hydropower facility uses water from the Nåvatn reservoir and plant will be equipped with an additional Francis turbine, while the turbine hall is located inside the mountain.
The funding will be used for the construction of a new hydropower plant in Østerbø, along with a 20km regional power line.