Denmark’s Better Energy A/S has tied up with domestic pension fund Industriens Pension to jointly install 1 GW of solar parks in Denmark, and possibly in Poland, not relying on state subsidies.
The duo has signed a partnership agreement, pledging to invest close to DKK 4 billion (USD 651.2m/EUR 537.3m) in the initiative, solar power producer Better Energy said on Wednesday. The partners will establish a portfolio consisting of five solar parks that are already in operation and more that are yet to be constructed. Most plants should be switched on in the course of 2021 and 2022.
Better Energy is developing, building and operating the photovoltaic (PV) parks, with around three-quarters of all being in Denmark. The rest will most likely be built in Poland. Each of the two parties will own a 50% in the commissioned plants and Better Energy will take care of their operation.
Industriens Pension and Better Energy will each invest DKK 1.5 billion in equity, along with long-term project financing, mostly mortgage loans.
"For the first time, Danish pension savings will help accelerate a massive scaling up of subsidy-free green energy production in Denmark. The next chapter in the green transition will entail accelerating the deployment of renewable energy capacity without state support, together with ensuring critical widespread community ownership and backing,” commented Rasmus Lildholdt Kjaer, CEO of Better Energy.
(DKK 1.0 = USD 0.163/EUR 0.134)
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