Power transmission capacity between Finland and Sweden will increase by 40 percent from 2011 as aresult of a 800 MW electricity cable to be built with European Investment Bank(EIB) support. The project is a significant contribution to an integrated Baltic Sea Region power market.
Under an agreement signed today, the EIB will provide a EUR150 m loan for the project to Fingrid Oyj, the Finnish grid operating company.The Fenno-Skan 2 cable across the Gulfof Botnia is a Trans European EnergyNetwork (TEN-E) priority project and is to connect densely populated areas incentral Sweden and Southern Finland. It will allow grid operators to betteroptimise production in power plants in the region.
Fenno-Skan 2 will also in coming years, by enabling betterlinks to major areas of consumption in the region, permit more efficient use ofhigher capacity in Finnish power generation and in power transmission linksconnecting Russia and Estonia to the Nordic area.