The European Investment Bank is bolstering energy efficiency in Finland, Poland and Sweden with a EUR 250 million loan to Fortum Corporation, headquartered in Espoo, Finland. The loan is for the ongoing construction of two cogeneration plants located in Finland and Poland, as well as the implementation of digital remote metering infrastructure in Sweden.
On this occasion, EIB Vice-President Eva Srejber stated: “The EIB attaches particular importance to the renewal of the Bank’s cooperation with Fortum by supporting investments contributing to energy efficiency and reliable supply in the Baltic Sea region.”
The project consists of three separate initiatives. The first concerns the implementation of a large-scale, natural gas-fired combined-cycle gas turbine plant at Espoo, Finland, replacing an older plant. Thanks to the new plant – to be commissioned in autumn 2009 – the use of coal and oil in district heat production in the area will decrease. The second scheme consists of a medium-sized coal- and biomass-fired plant at Czestochowa, Poland. According to plan, the Czestochowa plant will begin production in 2010. The project includes also the installation of an automatic metering management infrastructure for the promoter’s power distribution operations in Sweden. The meters will enable remote reading, provide real-time consumption information and allow differential pricing according to the system load.
The project is in line with the EU Action Plan for Energy Efficiency, which promotes the expansion of combined heat and power in Europe, and it supports climate change initiatives by promoting efficient generating technologies and the use of biomass for energy production. The introduction of digital metering is expected to contribute to the development of a harmonised pan-Nordic electricity retail market and energy efficiency through automatic meter management standardisation. Furthermore, that part of the project located in Poland also contributes to convergence objectives.
Background information:
The European Investment Bank is the EU's long-term financing institution, founded by the Treaty of Rome in 1958. Its mission is to support through its activities the development of EU policies. To that end, it borrows its funds on the capital markets in order to finance on the keenest terms projects that are in line with EU strategies. In 2008, the EIB made available EUR 51.5bn in support of projects located in the European Union.
EIB financing contributes primarily towards economic and social cohesion, environmental protection, research and innovation, support for SMEs, the development of trans-European transport and energy networks and the promotion of sustainable, competitive and safe energy. This last objective is a priority to which the EIB devoted EUR 10.2bn in 2008, of which EUR 2.2bn for renewable energy projects, representing a commitment that has tripled over the past two years. Already in 2009, over EUR 5bn has been approved by the EIB's Board of Directors for loans in support of energy
In the five-year period 2004-2008, the European Investment Bank provided a total of EUR 3.6 bn for projects in Finland. Industry and services, with 30% of EIB total lending in Finland over the last five years, mainly for knowledge economy, and in particular research and development activities, accounted for the lion’s share of EIB activity in the period.