Danish companions indication EUR530bn solar finance deal

• Industriens Pension and also Better Energy investments expected to produce 1GW in ability

Industriens Pension and also Better Energy have authorized an arrangement that is expected to enhance the implementation of solar parks in Denmark as well as Poland without state support.

The complete investment total up to near to DKK4bn (EUR0.53 bn), making it the biggest Danish solar financial investment to date.

The financing consists of DKK1.5 bn (EUR0.2 bn) in equity from the parties, supplemented with long-term project funding, normally in the form of mortgage loans.

The first 5 solar parks covered by the agreement are already in operation, while most of the remainder are expected to be in operation during 2021 and 2022.

The strategy is to construct around three-quarters of the solar parks in Denmark, while the remaining parks are likely to be integrated in Poland.

The overall capability of the solar parks is expected to amount to about 1GW, corresponding to a yearly decrease of greater than 350,000 tonnes of CO2.

The pension plan fund and also energy supplier will certainly hold an equal state in the parks that have actually been constructed and put into procedure.

Under the contract, Better Energy will establish, develop and also operate the solar parks.

Better Energy president Rasmus Lildholdt Kjær claimed: "For the very first time, Danish pension plan savings will aid increase an enormous scaling up of subsidy-free environment-friendly energy production in Denmark.

" In that sense, our partnership with Industriens Pension notes the beginning of a new era.

" The next phase in the eco-friendly shift will certainly require accelerating the release of renewable resource capability without state support, together with ensuring essential widespread area ownership and support.

" And this is specifically what we are finishing with this arrangement."

Industriens Pension chief executive Laila Mortensen added: "We're exceptionally pleased with the financial investment, which we anticipate will certainly protect solid, long-term returns for our participants, while at the same time adding significantly to accelerating the scale and speed of the eco-friendly shift.

" This is the first time that solar energy has actually been presented at this scale in Denmark, and also the financial investment marks a real development for solar energy in Denmark."