Vattenfall has started construction work on a 23MW ground-mounted photovoltaic system, its first solar project in which the community’s residents were able to participate directly financially.
Numerous interested parties have taken advantage of this opportunity, meaning they are now direct participants in an energy transition project in their home region in Germany.
Vattenfall is building the solar park in Silberstedt in Schleswig-Holstein without government funding.
Companies that build large open-space solar parks are permitted to involve local citizens in a project as investors.
Citizen participation in Silberstedt was carried out through a so-called qualified subordinated loan, which bears interest at an interest rate of 6.3% per year for the agreed term of the loan.
The Silberstedt project serves as a pilot project for other Vattenfall solar parks with citizen participation.
Claus Wattendrup, head of the solar & batteries business unit at Vattenfall, said: “When we present our project ideas in the communities where we consider the construction of open-field photovoltaic systems to be feasible, we are often asked whether there is an opportunity for direct citizen participation.
“This form of participation was new territory for us and the implementation within the framework of the Asset Investment Act involved a complex process.
“We are therefore very pleased that we have now been able to implement this form of direct citizen participation in Germany for the first time.
“My thanks go to the team that made this happen. Silberstedt is the first to do this, and other projects of this kind are to follow.”
In addition to the possibility of direct participation, the citizens of the Silberstedt community also benefit indirectly from the solar park.
Vattenfall pays the legally stipulated maximum amount of 0.2 cents to the municipality for every kilowatt hour of solar power generated, plus trade tax revenue from the operation of the system.
In addition, citizens of this community can purchase green electricity at reduced rates for a period of up to two years, the so-called citizen electricity.