Swedish state forest owner Sveaskog and developer Alight have entered into a strategic partnership to develop 2GW of solar power production over five years.
The first two projects consist of a solar park of approximately 150 hectares in the central part of the country and a one of 70 hectares in the south, in the electricity areas (SE3 and SE4) with the largest electricity deficit and need for expansion of renewable electricity production.
Within the framework of the long-term partnership, Alight will develop, build and co-own the arrays on Sveaskog’s land.
The forestry owner will co-invest between 30% and 49% in the solar parks and contribute with sustainable management initiatives during the development process, which has already begun on the first two sites.
“Sveaskog’s mission is to create value from forest and land. Investing in solar power on our land is natural for us as a large landowner and a way to contribute to the energy transition and the future need for fossil-free energy sources. Alight will be a stable partner for us in this work,” said Sveaskog chief executive Erik Brandsma.
Sveaskog owns 14% of Sweden’s forests, or approximately 3.4 million hectares, of which 3 million hectares are productive forest land.
If 10,000 hectares, or 0.2% of Sveaskog’s land (0.04% of Sweden’s total forest land) were converted into solar parks, it could generate around 5GW of renewable energy, which would more than double Sweden’s current installed solar capacity.
“Solar power is a fast and affordable solution to combat the climate crisis, especially given Sweden’s increasing demand for renewable electricity,” said Alight chief executive Harald Överholm.
“We are impressed by Sveaskog’s high ambitions in sustainability and look forward to jointly build and manage solar projects that strive for the best balance between ecological, economic and social values.”