The new plant – to be completed in 2014 – is expected to produce 585GWh of electricity annually and will include a 2.1km-long dam on the Köldukvísl River.
“Renewable energy is one of the cornerstones for the Icelandic economy. The country has a lot of unutilised potential in terms of renewable energy, and this potential can be realised by the implementation of capital-intensive, long-term projects, typical for energy projects,” said Johnny Åkerholm, NIB President and CEO. “Energy is a focus sector for NIB. Securing access to reliable clean energy supply in our member countries is at the core of NIB’s mandate. With this loan, the Bank will help Iceland to produce more sustainable energy in the form of hydropower.”
Landsvirkjun is the biggest power generator in Iceland, producing the larger part of the island’s electricity. It owns13 hydropower plants and two geothermal power plants with a total installed capacity of 1860MW.
The NIB loan provided for the Búðarháls project has a 16-year maturity.
