• Better Energy and Industriens Pension will co-develop 1 GW subsidy free solar
  • Most of this capacity will be located in Denmark and some may come up in Poland
  • 5 projects under the partnership are already online and remaining will be developed, built and operated by Better Energy
  • Total investment cost of this capacity is estimated to be DKK 4 billion with both the parties pooling in DKK 1.5 billion in equity

Danish solar project developer Better Energy has announced a partnership with local pension fund Industriens Pension under which the two will support development of 1 GW subsidy free solar PV capacity for a total investment of DKK 4 billion ($650 million).

Both the parties will pool in DKK 1.5 billion in equity and the remaining finance will come in as long-term project financing typically in the form of mortgage loans, the two informed.

The PV capacity will be mainly located in Denmark, but some of this may also be located in Poland. In July 2019, Better Energy said it had a more than 650 MW solar power portfolio in Poland and plans to roll out GWs of solar energy capacity in the coming years (see 650 MW Polish Solar Project Pipeline For Better Energy).

Under the 50:50 partnership agreement signed with Industriens Pension, Better Energy will develop, build and operate the solar parks, 1st 5 out of which are already operational. Remaining capacity is to come online during 2021 and 2022.

Better Energy says this is the ‘largest’ Danish solar investment to date and a breakthrough for the solar market in Denmark.

“For the first time, Danish pension savings will help accelerate a massive scaling up of subsidy-free green energy production in Denmark. In that sense, our partnership with Industriens Pension marks the beginning of a new era,” said Better Energy CEO Rasmus Lildholdt Kjær. “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. And this is precisely what we are doing with this agreement.”

Denmark with its goal of generating 70% electricity through renewable energy sources by 2030 is an exciting prospect for solar energy companies that see scope for the technology by way of providing clean energy for data centers, electric vehicles, among other industries.

In June 2020, Germany’s Encavis struck a partnership with GreenGo Energy Group to develop over 500 MW utility scale subsidy free solar PV portfolio in the country (see Encavis Plans Big For Denmark Solar Market).