German asset manager Luxcara and BeGreen have signed an investment agreement for four solar parks being built in Denmark with 415MW capacity.
The deal will see the parks become part of a portfolio of renewable energy assets managed by Luxcara for institutional investors.
BeGreen will be responsible for the construction as well as the operation and maintenance of the solar parks.
The parties have agreed to keep the purchase price confidential.
The first delivery of green electricity is expected in 2021 with final completion scheduled for 2023.
The planned green electricity output from the four solar parks is equivalent to the annual consumption of 120,000 Danish households.
The new solar parks will in total deliver savings in CO2 equivalents (CO2e) of 343,000 tons annually.
Luxcara managing director Philip Sander said: “We are excited to kick-start this exceptional solar portfolio in Denmark without any kind of government subsidies.
“The electricity will be sold to an off-taker under a long-term power purchase agreement or at the Nord Pool spot market.”
“It remains our clear focus to acquire high-quality renewable energy assets throughout Europe.
“This first venture into Denmark matches our requirements perfectly.
“Photovoltaic plants developed and built by BeGreen are reliable, long-term projects that enjoy the support of the local municipalities.
“They will contribute in the best possible way to the rapid green transition needed to stem climate change.
“We look forward to the cooperation with BeGreen.”
BeGreen chairman Anders Dolmer added: “We are delighted to engage in this partnership with Luxcara, with their impressive portfolio across Europe and outstanding track record within the renewable energy sector.
“Speed is essential in order to reach Denmark’s ambitious 2030 goal of a 70% reduction in CO2e emissions.
“With this historic agreement with Luxcara, the construction in cooperation with our partner Energi Innovation will continue as planned, which means that we will deliver the first green electricity in 2021; from day one 100% free of government subsidies.
“Our solar power parks provide green electricity that is cheaper and produced with less climate impact than electricity based on conventional sources like coal, gas or nuclear.
“The project is an important milestone for the integration of large-scale solar power as a cornerstone in the future Danish energy system, fully based on renewables.
“Solar and wind energy complement each other nicely.
“While the sun provides energy primarily during the day and in the summertime, when consumption is at its peak, the wind energy production is higher at night and in the wintertime.”