The Nordic Investment Bank (NIB) and Lappeenrannan Energia Oy have signed a EUR 15 million loan agreement to finance the Finnish energy company’s investments in the construction of a weatherproof electrical grid and the development of a district heating system through thermal energy storage. The investments will help the company achieve CO2 neutrality by 2026.
The 12-year-maturity loan will allow Lappeenrannan Energia, the energy and water supply company in Lappeenranta, to improve its security of supply. Through the loan, the company will improve its security of supply by investing in underground cabling. The loan facility will also cover the construction of a new substation in Joutseno.
The funding also allows the group to build a thermal battery in the Mertaniemi power plant area. It will enable the cost-effective storage and distribution of heat generated with low-cost electricity. The thermal energy stored in a large body of water will reduce the need for natural gas and oil. The battery is estimated to reduce emissions by 2,500 tonnes of CO2 a year.
In addition, Lappeenrannan Energia Group will invest in the next generation’s smart energy meters to adapt to the market change introduced in Finland in 2023. Previously, differences in energy supply and demand were calculated on an hourly basis. They are now calculated every 15 minutes which helps stabilise the electricity market.
The investments will help the company achieve its strategic goal of becoming carbon neutral by 2026.
“NIB’s mission is to provide funding for projects that generate long-term environmental impact and productivity,” highlights Arto Nikkanen, the CEO of Lappeenrannan Energia Oy. “We are happy to announce our cooperation with NIB. This allows us to speed up our projects that promote the green transition and improve the security of supply in the region of South Karelia.”
“Investments in electricity grids play a crucial role in enabling electrification and driving economic growth. We are proud to support Lappeenrannan Energia and co-finance their projects,” says Kari Jaukkuri, Senior Banker, Public Sector & Utilities at NIB.
Lappeenrannan Energia Group is an energy and water supply company owned by the City of Lappeenranta. It operates in Southeastern Finland covering the areas of Lappeenranta, Lemi, Taipalsaari and Savitaipale. The company distributes electricity to its 60,000 customers.
