The Nordic Investment Bank (NIB) has granted a 15-year, USD 35 million loan to Landsnet hf., Iceland's transmission system operator, to co-finance upgrades to the country's electricity grid, with a strong focus on transformer substations. The projects are expected to be energized between 2025 and 2026.

The financing covers three key initiatives:

• A 42 km 66 kV underground cable between Akureyri and Dalvík in the north.

• A 36 km 132 kV underground cable between Hella and Rimakot in the south.

• Two 66 kV submarine cables strengthening the connection to the Westman Islands, totaling 18 km, including 13 km underwater.

These projects will be linked to new and upgraded transformer stations and substations, designed to enhance supply security, reduce transmission losses, and meet Iceland's growing demand for renewable energy.

Jeanette Vitasp, NIB Vice-President & Head of Lending, said that strengthening Iceland's grid is vital to resilience and long-term development. Guðlaug Sigurðardóttir, CFO of Landsnet, added that transformer and substation upgrades will improve efficiency, resource use, and emissions reduction while supporting communities and businesses.

Landsnet operates Iceland's grid of more than 3,300 km of transmission lines and about 80 substations and transformer stations. Ownership rests primarily with the Icelandic State (93%) and the City of Reykjavik through Orkuveita Reykjavikur (7%).

The NIB, based in Helsinki, is owned by eight Nordic-Baltic countries and finances projects that increase productivity and benefit the environment. It holds an AAA/Aaa credit rating.

Source: arctictoday.com