No government subsidies will be sought for 4 solar PV plants with a combined capacity of 415 MW in Denmark that will be built under a partnership between renewable energy asset manager Luxcara and Danish solar developer BeGreen A/S. They claim this is one of the largest ever agreements signed in the field of PV transactions in Europe.
Once complete, the 4 projects will become part of a portfolio of renewable energy assets managed by Luxcara for institutional investors. It happens to be the 1st project for the asset manager in Denmark that counts its clients as European insurance companies and pension funds among others. Its current portfolio of solar and wind power plants in Europe exceeds 3 GW capacity.
Under the investment agreement signed between the 2 partners, BeGreen will undertake construction as well as operation and maintenance of the 4 projects to have them all working by 2023. Some part of this 415 MW capacity is targeted to start delivering clean energy in 2021. Purchase price too has been kept under wraps.
The projects will be built in the Vordingborg and Herning municipalities of Faxe on 420 hectares of land to generate 414 million kWh annually.
Electricity generated by this portfolio will be sold to an offtaker under a long term power purchase agreement (PPA) or at the Nord Pool spot market, informed Luxcara's Managing Director Philip Sander.
Denmark headquartered BeGreen develops and constructs subsidy free large scale solar projects and storage solutions in Denmark, Sweden and Poland in partnership with municipalities, landowners, grid operators and investors with electricity generated sold to consumers and companies. It claims to have built the 'largest' solar park of Denmark with 113 MW capacity and has another 163 MW project coming up at former airbase Vandel in Jutland.
A wind energy mainstay, of late Denmark has been attracting several PPA-based solar energy projects. In October 2020, Danish municipality Aabenraa approved European Energy's proposal to build a 300 MW solar farm as the 'biggest' solar farm in Northern Europe (see 'Largest' Solar Farm With 300 MW In Northern Europe).
Before that, Germany's Encavis said it plans to build over 500 MW of utility scale subsidy free solar projects in Denmark in partnership with GreenGo Energy Group A/S (see Encavis Plans Big For Denmark Solar Market).
Solar also won capacities in a technology neutral tender in Denmark (see 104 MW PV Awarded In Danish Tech-Neutral Auction).