The Nordic Investment Bank (NIB) has funded a Finnish hydropower upgrade.

A €20mn loan was signed with Kemijoki Oy, one of Finland’s largest hydro-electric companies, for the refurbishment and development of its facilities. The loan has a maturity of 12 years.

The finance will allow Kemijoki to increase its hydropower capacity and output by 25MW and 14GWH per year, respectively. It’s hoped the expansion will reduce the country’s greenhouse gas emissions by 14,000 tonnes per year.

Arild Moen, senior communications officer at the NIB, tells GTR: “NIB promotes sustainable growth by providing long-term complementary financing. An NIB loan or guarantee for a project generally does not exceed 50% of the total cost of the project.

“Kemijoki Oy’s project fits well with the NIB’s mandate to strengthen competitiveness and enhance the environment. Hydropower is one of the most efficient electricity production technologies around due to its low operational costs and its storage function. It also allows for quick supply responses to price signals.

“In addition, Kemijoki Oy owns a large share of the regional hydropower capacity and therefore has an important role in maintaining the stability of the regional electricity network. That role may become even more important in the future considering the targeted expansion of wind power production in Finland.”