🇮🇸 NIB finances upgrades to Iceland’s electricity grid

• The Nordic Investment Bank (NIB) is providing Landsnet hf., Iceland’s transmission system operator, with a 15-year USD 35 million loan to co-finance upgrades to the national grid.
• The investments include new underground and submarine cables as well as substations and are expected to be energized between 2025 and 2026.

The NIB loan will finance three key projects to strengthen Iceland’s electricity network. Together, these investments will improve security of supply, reduce transmission losses, and support the country’s growing energy demand as it advances its energy transition.

In northern Iceland, Landsnet is constructing a new 66 kV underground cable between Akureyri and Dalvík, stretching 42 kilometres. In the south, a 132 kV underground cable between Hella and Rimakot is being laid across 36 kilometres. In addition, the connection to the Westman Islands is being reinforced through the installation of two new 66 kV submarine cables, totalling about 18 kilometres, of which 13 kilometres run underwater.

Jeanette Vitasp, NIB Vice-President & Head of Lending, says: “Strengthening Iceland’s grid is vital to meet rising demand and ensure a reliable and resilient energy system. Investing in the Icelandic energy infrastructure also contributes to economic development and quality of life in Iceland.”

Guðlaug Sigurðardóttir, CFO of Landsnet, says : “Landsnet is committed to strengthening the transmission system to benefit communities and businesses by enhancing security of supply, improving resource utilization, and reducing emissions. Projects such as the new submarine cables to Vestmannaeyjar support economic development and strengthen energy security. We are pleased that Landsnet‘s goals are in line with the NIB‘s sustainability emphasis.”

Landsnet hf. is Iceland’s transmission system operator. Landsnet’s transmission system – ‘the grid’ – connects Iceland’s five generating companies to regional distribution networks and directly to large industrial energy consumers. The grid includes more than 3,300 km of transmission lines and about 80 substations and transformer stations. Landsnet is ultimately owned by the Icelandic State (93%) and the City of Reykjavik through Orkuveita Reykjavikur (7%).

NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.

For further information, please contact

Tiina Kuusela, Senior Banker, Public Sector & Utilities, at +358 40 559 1234, [email protected]

Dmitri Kouznetsov, Director, Head of Public Sector & Utilities, at +358 50 576 5080, [email protected]

Iiris Anttalainen, Communications Officer, +358 10 618 0257, [email protected]

Originally published on 19 September by Nordic Investment Bank.

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