Kemijoki Oy, the Finnish hydroelectric company, won a 20 million-euro ($26 million) loan from the Nordic Investment Bank to boost hydropower in the country as it seeks to reduce reliance on fossil fuels.
The 12-year loan will help Kemijoki upgrade its hydropower facilities and increase output by 25 megawatts when completed in 2016, according to a statement from the Helsinki-based NIB.
Kemijoki, majority owned by the Finnish government, operates 20 hydropower plants with a total capacity of 1,142 megawatts, according to the NIB, which is owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden.
Finland is boosting hydropower because of its ability to balance intermittent renewable sources such as wind. The nation plans to increase electricity from renewables by 28 percent to 33 terawatt-hours by 2020 to replace fossil fuels and curb emissions, according to the 2008 national climate and energy strategy. The government will finalize an update to this document by the end of this month.
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