Power transmissioncapacity between Finland and Sweden will increase by 40 percent from 2011 as aresult of a 800 MW electricity cable to be built with European Investment Bank(EIB) support. The project is a significant contribution to an integrated Baltic Sea Region power market.
Under an agreement signed today, the EIB will provide a EUR150 m loan for the project to Fingrid Oyj, the Finnish grid operating company.The Fenno-Skan 2 cable across the Gulfof Botnia is a Trans European EnergyNetwork (TEN-E) priority project and is to connect densely populated areas incentral Sweden and Southern Finland. It will allow grid operators to betteroptimise production in power plants in the region.
Fenno-Skan 2 will also in coming years, by enabling betterlinks to major areas of consumption in the region, permit more efficient use ofhigher capacity in Finnish power generation and in power transmission linksconnecting Russia and Estonia to the Nordic area.
"We are happy to help finance this project which willimprove the integration of electricity markets and contribute to increasedsecurity of supply in major parts of the Baltic Sea Region," said EIBVice-President Eva Srejber.
Background:
Themission of the EIB, the EuropeanUnion's bank, is to contribute to the integration, balanced development andeconomic and social cohesion of the EU Member States by financing soundinvestments. This loan is one of many supporting the EU Strategy for the BalticSea Region and its four priorities: sustainable environment; regional prosperity; increased accessibilityand attractiveness; safety and security.
Fingrid is the national electricitytransmission system operator. Fingrid's nation wide power grid has a crucialrole in the Finnish power system. Fingrid owns the Finnish main grid and allsignificant cross-border connections. The transmission grid managed by Fingridconsists of approx. 14 000 kilometres of transmission lines and more than 100substations. Customers comprise electricity producers, major industrialenterprises, and regional and distribution network companies.