Commerz Real and Hydro Rein are to buy a 362MW solar portfolio in Denmark from developer GreenGo Energy.
They comprise a 170MW project located on Denmark’s west coast and a 192W project in the south of the country.
Construction is scheduled to commence in 2024 with commissioning scheduled for 2026. GreenGo will continue to develop the projects until the start of operations.
The transaction is still subject to approval by the Danish Business Authority, has been made under a newly formed joint venture between Commerz Real and Hydro Rein.
They will seek to buy up to 1GW of GreenGo’s solar developments, which corresponds to an investment of €600m over the next three to five years.
GreenGo Energy has entered into a joint venture in Denmark to execute 1GW of utility scale solar over the next three to five years.
The total energy production of the targeted project portfolio corresponds to approximately 4% of Denmark’s total yearly electricity demand today.
Karsten Nielsen, CEO of GreenGo Energy, said: “Together with Commerz Real and Hydro Rein we can fully leverage the complementary capabilities of all the parties involved, leaning on the extensive experience in renewable investments and a strong industrial presence in the Nordic power market.
“This first GW-scale partnership agreement for our Mermaid portfolio in Denmark is a big milestone, helping Denmark to accelerate the energy transition with significant impact well before 2030.”
Barkha Mehmedagic, Global Head of Institutional Sales and Group Treasury at Commerz Real, said: “The Danish investment market for photovoltaic is still relatively young and is seeing a correspondingly dynamic development. This offers the potential for growth and diversification for our institutional investors in particular.
“With Hydro Rein and GreenGo Energy we also have experienced partners firmly rooted in the Scandinavian market by our side.”