The EIB is extending a loan of 800 million SEK to Göteborg Energy AB for the construction of a combined heat and power plant.

The project concerns the construction of a gas fired combined cycle co-generation unit - Rya Kraftvärmeverk and the extension, reinforcement and upgrading of the municipal district heating and power networks. The new plant would have a maximum capacity of 600 MW and is to be located close to Rya harbour, some 7 km outside Göteborg.

Göteborg Energi AB will increase by operating this new plant its own electricity generation to about one third supplying some 30 % of the city's electricity and approximately 25% of the heating requirements.

Building new and efficient energy plants is both a national and international concern. The new gas fired plant will have a very high energy efficiency of 90 % allowing thus reduced consumption of resources and diminishing the impact on the environment. The Rya plant will ensure significant environmental benefits in the North European electricity-producing system. The emission of carbon dioxide will decrease by approximately 0.6 million tons a year, corresponding to 35 % of the present emissions from Swedish electricity production, or 1% of Sweden's total emission of carbon dioxide. This project falls with in the EIB's objective to contribute to the EU's climate change policy by financing schemes improving energy efficiency and renewable energy projects. The Bank's lending target is to increase the share of renewable energy up to 50% of its financing for electricity generation by 2010.

For the people in Göteborg the Rya combined heat and power plant means an important modernisation of energy production plants, first-rate economy and improvement of service reliability. Furthermore the improved balance of the city's own production and procured energy will also secure the operation of essential functions in Göteborg even during major interruptions to deliveries via the national electricity supply network. The new combined heat and power plant implies furthermore a significant reduction in the collective average age of the energy plants in Göteborg, which will lead to a reduction in maintenance costs.

Göteborg Energi AB, Sweden, is a regional energy company wholly owned by the City of Göteborg, which was founded in 1847 when the first gas was distributed. It is the leading energy company in Western Sweden and involved in the generation and distribution of electricity, natural gas, district heating and cooling.

The EIBs cumulative investments in Sweden stand at EUR 6,7 billion through 64 projects, including a waste water scheme and the port in Göteborg.