Industriens Pension and Better Energy have signed an agreement that is expected to boost the deployment of solar parks in Denmark and Poland without state support.
The total investment amounts to close to DKK4bn (€0.53bn), making it the largest Danish solar investment to date.
The funding includes DKK1.5bn (€0.2bn) in equity from the parties, supplemented with long-term project financing, typically in the form of mortgage loans.
The first five solar parks covered by the agreement are already in operation, while the majority of the remainder are expected to be in operation in the course of 2021 and 2022.
The plan is to build around three-quarters of the solar parks in Denmark, while the remaining parks are likely to be built in Poland.
The total capacity of the solar parks is expected to amount to approximately 1GW, corresponding to an annual reduction of more than 350,000 tonnes of CO2.
The pension fund and energy provider will hold an equal state in the parks that have been built and put into operation.
Under the agreement, Better Energy will develop, build and operate the solar parks.
Better Energy chief executive Rasmus Lildholdt Kjær said: “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.
“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.”
Industriens Pension chief executive Laila Mortensen added: “We’re extremely pleased with the investment, which we expect will secure solid, long-term returns for our members, while at the same time contributing significantly to accelerating the scale and pace of the green transition.
“This is the first time that solar energy has been rolled out at this scale in Denmark, and the investment marks a real breakthrough for solar energy in Denmark.”