Agder Energi secures NIB loan to increase hydropower efficiency in Norway
The Nordic Investment Bank (NIB) has approved a 10-year loan to Norwegian energy group Agder Energi to increase hydropower efficiency and install a new turbine at an existing hydro power plant in Agder, Norway.
The NOK600 million (€59.39 million) loan will be used for renewing the Åseral Nord hydropower project located along the Mandal watercourse.
The project involves the construction of a new dam, a hydro tunnel, and the installation of a new turbine at the Skjerka power station.
The funding is expected to boost the production capacity by 60 GWh per year, in order to sustain the security of power supply and to contribute to the more efficient use of Norwegian hydropower resources.
Agder Energi said a new dam will be constructed directly downstream from the old Langevatn dam which was built in the 1950s. The new dam will be 10 metres higher which will expand the volume of the reservoir from 22 million cubic metres to 47 million cubic metres.
Additionally, a new tunnel of 7.2km will replace the existing 13km tunnel that connects the Langevatn dam and the Nåvatn reservoir as it is in poor condition and is in the danger of collapsing. The new tunnel is expected to help in improving the hydraulic capacity.
Agder Energi secures €59 million loan from Nordic Investment Bank to increase hydropower efficiency in Norway. Photo courtesy of Nordic Investment Bank.
Water for the Skjerka hydropower facility comes from the Nåvatn reservoir. The Skjerka power plant will get an additional Francis turbine, with its turbine hall to be located inside the mountain.
Henrik Normann – Nordic Investment Bank President and CEO 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.
“Projects like these are important in balancing the variable wind and solar power in the European power market and for contributing to the green shift.”
Agder Energi is among the top hydropower producers in Norway. Majority-owned by local municipalities, Agder Energi’s operations also include distribution and end-user hydropower sales among other services.