The Nordic Investment Bank (NIB) has agreed to lend €42.4m to the Norwegian hydroelectric company Energiselskapet Buskerud (EB) for upgrading its two hydropower plants and parts of its distribution network.
The upgrade works at the existing Kaggefoss and Mykstufoss hydropower plants in the southern county of Buskerud are expected to raise their generation capacity by 2.5%.
NIB president and CEO Henrik Normann said: "NIB's loan will help Energiselskapet Buskerud to increase the security of supply and prolong the lifetime of its hydropower plants for another 30 years."
The firm will also invest the money to improve its electricity network in the region during 2013-2015 period by raising the transfer capacity of its distribution lines from 66kV to 132kV.
New substations will be installed to enhance the security of supply, reduce power losses and magnetic fields along the line.
EB also looks forward to establishing additional network connections to new production units in compliance with the renewable production and supply security guidelines in the country.
The firm has plans to install smart meters by 2019.
Jointly owned by Municipality of Drammen and Buskerud County Municipality's renewable investment firm Vardar AS, with each holding 50% stake, EB is one of the largest hydroelectric power generators in the country with 238 employees and 58,000 customers.
Image: Machine hall at Kaggefoss hydropower plant. Photo: courtesy of EBM