NIB backed by InvestEU finances a 186 MW onshore wind farm in northern Finland
InvestEU finances a 186 MW onshore wind farm
- The Nordic Investment Bank (NIB) and Pahkakosken Energia Oy, have signed a 15-year loan to build a 186 MW onshore wind farm in North Ostrobothnia in Finland.
- The agreement amounts to €50 million supported by the InvestEU programme.
- The InvestEU programme aims to mobilise more than €372 billion in additional investment over the period 2021-27 for European Union policy priorities.
The Pahkakoski wind farm will be located in the municipality of Ii in northern Ostrobothnia and consist of 30 turbines produced by Vestas Wind Systems A/S. This project is signed under NIB's InvestEU Framework Operation on Clean Energy Transition which aims to support the deployment of renewable energy generation capacity in the Nordic and Baltic region. The agreement is the first loan signed by NIB under the InvestEU Programme.
The wind farm will increase Finland's current wind power capacity. Increasing the generation of renewable energy is critical to support the decarbonisation of energy and increase the availability of energy at competitive prices, which are important for businesses and consumers. The wind farm is also expected to stimulate growth and competitiveness in the region. The project is expected to be completed by August 2025.
Overall, the InvestEU programme aims to mobilise more than €372 billion in additional investment over the period 2021-27 for European Union policy priorities, such as the transition to carbon neutrality and investment in sustainable infrastructure.
European Commissioner for the Economy, Paolo Gentiloni, said: “I welcome this agreement in Finland, which is an excellent example for the InvestEU programme contributing to our shared objectives of a clean energy transition and strengthened energy independence. This Nordic Investment Bank loan backed by InvestEU is not only an investment into the competitiveness of this region. It will also make available renewable energy to many more consumers and businesses.”
President and CEO of NIB, André Küüsvek, said: “This inaugural loan agreement by NIB under the InvestEU Programme marks another important step towards a greener future. Propelled by Finland's wind power surge, our bank is dedicated to fostering productivity intertwined with sustainable and environmental advance across the Nordic and Baltic region.”
Background information
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union's policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor's and Moody's.
Pahkakosken Energia Oy is a special purpose company owned by Ilmatar Energy Oy, a Nordic renewable energy company headquartered in Finland and majority-owned by investment funds managed by French asset manager Omnes Capital.
