Danish solar energy developer, Better Energy has signed a deal with Danish Pension Fund, Industriens Pension which will see them develop 1 GW of solar projects in Denmark and Poland. The deal includes $243 million in equity as well as long term financing in terms of mortgage loans. The total equity investment and financing for the project will be to the tune of $648 million potentially making it one of the largest Danish solar investments to date. The company has also reported that the investment is free of any state-support. Five of the solar parks that are part of the agreement are already in operation and more are yet to be constructed. These will be constructed and operational over 2021 and 2022.
Three-quarters of the solar parks will be built in Denmark while the remaining will be developed in Poland. Better Energy and Industriens Pension will own 50 per cent each of the solar parks while the former will be in charge of operations. The proposed project is projected to reduce annual carbon dioxide emissions by 350,000 tonnes.
Better Energy is optimistic that the project will help Denmark achieve its climate goals. The company is confident that the large-scale investment will secure assured long-term returns and catalyse the green energy transition in the country. In November 2020, the company announced a pilot project in Vordingborg, Denmark to demonstrate how solar parks can be built on restored wetlands in the future.