The funding will also be used to finance a power line which connects the Orrberget wind power mills to the grid with renewable energy
NIB offers $10.2m financing to improve water and renewable energy in Sweden. (Credit: Borlänge Energi)
The Nordic Investment Bank (NIB) has agreed to provide SEK 100m ($10.2m) loan to AB Borlänge Energi to improve the drinking water and sewage treatment in Borlänge, Sweden.
Under the 15-year loan agreement, AB Borlänge Energi will utilise the finance to construct wastewater infrastructure and power transmission lines in Borlänge.
The funding will also be used to finance a power line which connects the Orrberget wind power mills to the grid with renewable energy.
This project is expected to bring renewable energy to the Sweden electric grid and contributes to the country’s decarbonisation.
The loan has been offered to improve the drinking water and sewage treatment of Borlänge by expanding water infrastructure at Lennheden.
The ongoing Lennheden sewerage project includes construction of around 12km of pipes, as well as installation of pumping stations, to connect around 300 individual properties to the central wastewater treatment plant located in Borlänge.
The capacity of the sewerage project is estimated to increase to 670 population equivalents (PE).
The power transmission lines will produce about 96GWh of electricity per year
The investment comprises 27km cable along with an overhead 36 kV power line which will be used to connect the nine windmills at Orrberget to the network.
The connection will add a total capacity of 33MW, which is estimated to produce approximately 96GWh of renewable electricity per year.
In December last year, NIB agreed to provide a finance of $41.5m to Tallinna Vesi, an Estonian water utility company, to improve freshwater supply and wastewater management infrastructure in Tallinn.
The investment will provide access to good quality drinking water, while ensuring that wastewater treatment is conducted efficiently to meet the challenges of climate change and population growth.