The Council of Europe Development Bank (CEB) has approved a €75 million loan to Reykjavík Energy to expand utility systems and enhance their resilience against climate threats and natural disasters. The funding, equivalent to over ISK 11 billion, will be used for the development of electricity, heating, and water utilities.
A significant increase in population in Iceland‘s capital area has demanded development of new housing which is connected to Orkuveitan’s subsidiary Veitur Utilities‘ systems. Alongside the expansion of the utilities, efforts are being made to secure additional geothermal resources for the district heating system and investments are needed in the electric grid to meet energy transitions.
All utilities‘ need to be strengthened due to the impacts of climate change such as rising sea levels, increased precipitation intensity, and uncertain weather changes.
In the bank’s announcement about the loan, it is specifically mentioned that utility services are offered at favorable prices and therefore have an equalizing effect on society.
Sævar Freyr Þráinsson, CEO of Orkuveitan:
“Orkuveitan is growing and strengthening. Veitur Utilities works according to ambitious plans for enhancing utility systems, which are a cornerstone of our community’s sustainability. It is good that Orkuveitan enjoys trust for diverse and favorable financing of these essential projects. Recent examples of developing and strengthening utility systems include laying and connecting a new hot water main for the southern part of the capital area and building a new substation for Veitur’s electric utility so that cruise ships can be charged at Reykjavík Harbour.”
Contact:
Snorri Hafsteinn Þorkelsson
CFO
tel: +354 516 6100, email: [email protected]
