IJslandse geothermische centrales gefinancierd met goedkope EU-leningen (en)
The European Investment Bank (EIB) signed three loans totalling EUR 157 million on Friday 12th of November 2004 in Iceland.
The loans serve to finance the construction and operation of two geothermal electricity generation and transmission facilities in the southwest of Iceland by the country's three largest energy companies Landsvirkjun (loan of EUR 50 mio), Reykjavik Energy (EUR 77 mio) and Hitaveita Sudurnesja (EUR 30m). The project consists of the development of two geothermal fields and the construction of two new geothermal cogeneration plants of 80MWe/266MWth and 100MWe respectively, plus a new high-voltage transmission line.
The power plants will supply the increased requirements of aluminium plant of Nordural with competitive power. Electricity will also be supplied to the municipal distribution grids in the southwest of Iceland as well as to the national power grid. The geothermal plants will also produce heat - in one case for district heating and in the other case to supply new industrial requirements.
The loans are provided by the EIB under a specific facility with a total of EUR 1.7 billion that was established for the EIB's lending to the EFTA counties. 23% of this EFTA Facility had been allocated for Iceland, mainly to the renewable power sector, but also for transport infrastructure, water supply and wastewater collection and treatment. The EIB's role under its EFTA Facility is to finance projects of common interest to EFTA and EU contries, in this case the development of renewable geothermal energy for power production for all electricity users in Iceland and to meet the needs of electricity intensive industry.
Thomas Barrett, Director of EIB, who signed the three loan contracts said: "The investments contribute to the common EU/EFTA policy to promote renewable energy, which has a key role to play in the Kyoto Protocol. With the recent Russian signature of the Kyoto Protocol, the protocol will enter into force in early 2005, making the emissions reduction targets taken on for the 2008-2012 period by more than 30 developed countries legally binding including Iceland."
By contributing to the growth of the aluminium industry, the EU expects the investments will also have a positive economic impact for the Icelandic economy. The EIB loans will diversify the sources of funding and reduce the cost of capital for this important environmental investment.
For further particulars, please contact Mr Paul Löser, p.loeser@eib.org, tel.: +352-4379-3139
or visit our web site: http://www.eib.org
This press release can also be obtained in Danish, Finnish, Icelandic, Norwegian and Swedish on demand by email a.civitareale@eib.org