The European Investment Bank (EIB) is bolstering energy efficiency in Finland, Poland and Sweden with a 250-million-euro (about 346.26 million U.S. dollars) loan to Fortum Corporation, headquartered in Espoo, Finland, said a press release on Monday.

The loan is for the ongoing construction of two cogeneration plants located in Finland and Poland, as well as the implementation of digital remote metering infrastructure in Sweden.

"The EIB attaches particular importance to the renewal of the bank's cooperation with Fortum by supporting investments contributing to energy efficiency and reliable supply in the Baltic Sea region," said EIB Vice-President Eva Srejber.

The project consists of several separate initiatives.

The first concerns the implementation of a large-scale, natural gas-fired combined-cycle gas turbine plant at Espoo, Finland, replacing an older plant.

The new plant, to be commissioned in autumn 2009, will reduce the use of coal and oil in district heat production in the area.

Another scheme consists of a medium-sized coal and biomass- fired plant at Czestochowa, Poland.

The Czestochowa plant, to begin production in 2010, includes also the installation of an automatic metering management infrastructure for the promoter's power distribution operations in Sweden.

The meters will enable remote reading, provide real-time consumption information and allow differential pricing according to the system load.

The project is in line with the EU Action Plan for Energy Efficiency, which promotes the expansion of combined heat and power in Europe, and it supports climate change initiatives by promoting efficient generating technologies and the use of biomass for energy production.

The introduction of digital metering is expected to contribute to the development of a harmonized pan-Nordic electricity retail market and energy efficiency through automatic meter management standardization.

The European Investment Bank is the European Union's long-term financing institution, founded by the Treaty of Rome in 1958.

Its mission is to support through its activities the development of EU policies. In 2008, the EIB made available 51.5 billion euros in support of projects located in the EU. (1 U.S. dollar = 0.7220 euros)