Nordic Solar secures large credit agreement for Danish solar farm – EnergyWatch

Solar energy company Nordic Solar, which operates in 12 European countries, has landed a financing agreement for one of its solar projects on the Danish island of Funen.

Nordic Solar has signed a credit agreement with Jyske Bank for an unspecified three-digit million DKK amount, valid for 20 years.

The agreement covers Nordic Solar’s Højby project, which was connected to the grid in the summer of 2023.

The plant is today a fully operational renewable energy plant of 32 MW, which is roughly equivalent to the electricity consumption of 11,000 European households, the company writes in a press release.

”We are very pleased to have reached an agreement on long-term financing. It is an important step towards increasing the production of solar energy and shows that financing energy infrastructure projects is an essential part of the green transition,” says Holger Bang, chief investment officer at Nordic Solar.

A large part of the park’s production is already secured, as much of it has been sold through power purchase agreements, PPAs.

Four PPAs have been signed with Danish companies for the Højby solar farm, each covering an agreement to purchase a portion of the electricity over a period of up to 11 years. 

Jyske Bank is also pleased to have entered into a credit agreement with Nordic Solar, as the bank has set concrete goals for financing energy plants.

”Jyske Bank has great ambitions to contribute to the green transition, and the financing of this plant is another step towards our goal of supporting 5 TWh by 2025,” says Claus Simonsen, head of renewable energy at Jyske Bank.

Nordic Solar came out of 2023 somewhat bruised, with both losses and a decline in revenue. 

Nikolaj Holtet Hoff, CEO of the company, tells EnergyWatch that Nordic Solar will go from 372 MW in operation to twice that amount this year.

”And we have 1.7 GW on the way within the next few years. So we see very strong growth ahead of us,” he said earlier this year.

(English edit by Kristoffer Grønbæk)