$80m NIB loan finances power production and distribution in Iceland
The Nordic Investment Bank has signed an $80 million loan with Icelandic utility Orkuveita Reykjavikur to finance an investment programme to improve geothermal power production and electricity distribution networks in the country.
The 15-year loan will help finance new make-up and reinjection wells, new steam pipeline connections, a new workshop building as well as an expansion of the thermal station in Hellisheiði geothermal power plant. The drilling of new make-up wells is a continuous activity to maintain the capacity of the geothermal power plants.
In the Nesjavellir geothermal power plant, the projects include new make-up wells, a complete control system update and replacement of equipment in the thermal stations.
The loan will also co-finance investments in the electricity distribution system, strengthening and replacing old equipment in the network, harbour electrification and the installation of smart meters. The electrification of the harbour area will allow for shore to ship electricity and thereby reduce the emissions from ships running on auxiliary diesel power when moored.
