EIB Loans €170M for Geothermal Energy Plants in Iceland
November 24, 2009 // Published as a news service by IHS
The project concerns the expansion of the Hellisheidi geothermal complex by an additional 90 megawatts (MW) and the construction of a new 90-MW geothermal power plant at Hverahlíð.
IHS Climate Change & Clean Energy Services Solar Photovoltaic Standards Wind Energy StandardsThe objective of these new power units is mainly to meet increasing demand for electricity in the export-orientated industrial sectors, notably supplying one existing and one new aluminum smelter.
The EIB says the project supports European Union (EU) policy to promote the use of renewable energy globally and to fight climate change.
"We are pleased to support this environmentally-friendly technology for a project contributing to economic recovery in Iceland and to continue co-operation with our established partner, Orkuveita Reykjavikur," said EIB vice president Eva Srejber.
Background
The EIB is the EU's long-term financing institution lending for investments that contribute to achieving the EU's objectives. Founded in 1958, it operates in the 27 EU member states, the EU's neighbor countries and more than 100 other countries around the globe.
The EIB can, since 1994, lend to eligible projects in Iceland under the European Free Trade Association (EFTA) Facility. This mandate enables the EIB to support projects, notably in the sectors of energy, environment, Trans-European Energy Networks and research, development and innovation, located in the territories of the EFTA countries (Iceland, Liechtenstein, Norway and Switzerland). The EFTA Facility was recently extended for a further four-year period (2010-2013), allowing additional loans totaling €800 million to be committed.
Orkuveita Reykjavikur is Iceland's largest multi-utility provider, delivering electricity and hot water, generated predominantly from geothermal sources, as well as drinking water and wastewater services to more than two-thirds of the country's population.
Source: European Commission (EC).