Finland. Lappeenrannan Energia Oy
| Date of agreement: | 07 Oct 2024 |
|---|---|
| Country: | Finland |
| Customer: | Lappeenrannan Energia Oy |
| Amount in EUR: | EUR 15 million |
| Maturity: | 12 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
This loan contributes to climate change mitigation: 99%
Project
The loan has been provided for Lappeenrannan Energia Oy for investments in the power distribution network in Southeastern Finland. These investments include improving underground cabling as a measure of weatherproofing, the construction of a new substation in Joutseno, Finland, a new thermal battery for energy storage and better utilisation of uneven heat from the power plant.
Additionally, between 2025 and 2028, the company is set to invest in new smart meters, which will help them adapt to the 15-minute imbalance settlement period introduced in Finland in March 2023. This update changed the calculation interval of the difference between energy supply and demand from hourly to 15 minutes. This helps stabilise the energy market.
Fulfilment of NIB's mandate
Investments in the energy grid will lengthen the company’s electricity grid by 8%. Currently, the length stands at 6,300 kilometres, above Finland’s median network length. The company distributes power to 60,000 customers around the Lappeenranta area in Southeastern Finland. Investments in cabling and other weatherproofing measures will improve the security of supply in the company’s network.
The new smart meters will help Lappeenrannan Energia improve the efficiency of the European Transmission System Operators’ (TSOs) operations.
Productivity impact indicators in relation to the investments:
- Capex, EUR million
- Cabling rate of low- and high-voltage networks
Sustainability summary
The electricity grid investments aim to improve the electricity network’s security of supply. The investments mainly comprise underground cabling, the reconstruction of a substation and the rollout of smart meters. The investments will increase and strengthen the distribution networks in Southeastern Finland, primarily in the rural areas around Lappeenranta.
The company is also investing in a district heating battery, which will help the company reduce the use of fossil fuels. The estimated annual CO2 reductions will be around 2,500 tonnes of CO2 per year. The loan is NEB-eligible.
Environmental impact indicators in relation to the investments:
- Cabling rate of low- and high-voltage networks
- Reduction of annual fault frequency
