Better Energy to deploy 1GW of subsidy-free solar thanks to pension fund bargain

Dec 2, 2020 11:05 PM ET
  • Around 1GW of solar projects are to be created by Better Energy in Denmark and also Poland after the renewables business protected what it refers to as a "historical agreement" with a Danish pension fund.
Better Energy to deploy 1GW of subsidy-free solar thanks to pension fund bargain
Image: Better Energy

The bargain in between Industriens Pension as well as Better Energy will certainly consist of DKK1.5 billion (US$ 243 million) in equity from the events, supplemented with long-term project funding, normally in the form of mortgage.

In total, the equity investment and project financing will be nearly DKK4 billion (US$ 648 million), making it "the biggest Danish solar investment to day", according to Better Energy. The firm claimed the deal will supply a "significant increase to the deployment of solar parks without state support".

The first five solar parks covered by the contract are already in operation, while the majority of are expected to be operational in 2021 and also 2022. The strategy is to develop around three-quarters of the solar projects in Denmark, while the staying are likely to be developed in Poland.

" For the very first time, Danish pension cost savings will aid increase a massive scaling up of subsidy-free eco-friendly energy production in Denmark. In that feeling, our collaboration with Industriens Pension marks the start of a new period," said Rasmus Lildholdt Kjær, CEO of Better Energy.

" The following chapter in the eco-friendly shift will involve speeding up the release of renewable resource capability without state support, along with ensuring critical extensive neighborhood possession and also support. And this is specifically what we are finishing with this arrangement."

Better Energy is developing, structure and running the solar projects, and also the agreement is a 50:50 partnership.

Laila Mortensen, CEO of Industriens Pension, said as well as marking a "actual innovation" for solar power in Denmark, the investment is expected to protect "strong, lasting returns" for the fund's members, while additionally "adding significantly to increasing the scale as well as speed of the green change".

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