Power purchase guarantee
This is a separate Norwegian guarantee scheme with no export requirements. The power guarantee applies to power contracts concluded with buyers in Norway.
Industrial companies with high electricity demands may need to enter into long-term power contracts in order to get a more predictable price
About the product
Who can apply?
The power seller, the power buyer, or the lender can apply for a guarantee.
Industrial companies with large power demands may have a need to sign long-term electricity contracts at a predictable price. The Energy Purchase Guarantee Scheme was created in 2011 to make it easier for industrial companies to obtain such contracts.
When to apply
The power guarantee must be provided no later than when the power agreement is concluded. Applications must therefore be submitted in good time before the planned conclusion of the power agreement.
This scheme is reserved for industrial companies registered in Norway with activities in:
- Wood processing
- Metal production
- Production of chemical products
What can Eksfin guarantee?
Eksfin can provide two different guarantees in connection with the conclusion of power agreements with power-intensive industrial companies:
- A guarantee to the power seller, which safeguards against the buyer’s failure to fulfil the agreement.
- A guarantee to the banks, which safeguards the repayment of loans that the buyer has taken out for the advance payment of parts of the supply of power.
The guarantees can, at any one time, cover a maximum of 80 percent of the outstanding financial obligation to which the guarantee relates. The financial obligation that is guaranteed in this context will be the remaining payments agreed in the power agreement and/or outstanding loans given in connection with the advance payment for the power.
What does the guarantee cover?
- The guarantee for the power buyer’s payment under the power agreement ensures that the power seller is paid for the power.
- The guarantee for the industrial company’s loan that is taken out to pay for power in advance under the power agreement.
What does the guarantee cost?
Eksfin’s guarantee premium will be determined based on:
- The power buyer’s creditworthiness (credit rating).
- The term, volume, and power price of the power agreement.
- The size and term of the power buyer’s loan for advance payment.
- The supply point of the power.
How to apply?
Please get in touch with Eksfin if your company wishes to apply for the power guarantee, and we’ll help you along with the process.
Read more about longterm power guarantee: