Largest Danish solar PV project ever
Luxcara and BeGreen ready to supply green Danish electricity to 120,000 households
13 January, 2021
- Luxcara og BeGreen sign one of Europe’s largest solar PV agreements
- Four new solar PV parks in Denmark with a collective capacity of up to 415 MWp
- First green electricity delivered already this year, project fully completed in 2023
- BeGreen will be responsible for construction, operation and maintenance
Hamburg/Bregentved: Denmark’s largest solar PV project to date, with a total capacity of up to 415 MWp, will deliver the first green electricity to consumers and businesses in 2021 and be fully phased in by 2023, according to an investment agreement just signed by Danish development company BeGreen and Luxcara, one of Europe’s most experienced renewable energy asset managers.
The agreement comprises four solar PV parks to be built in the Municipalities of Faxe (two parks), Vordingborg and Herning. The solar PV plants will be part of a portfolio of sustainable assets managed by Luxcara on behalf of institutional investors in Europe. BeGreen will be responsible for the construction, operation and maintenance of the solar PV parks. This is one of the largest solar park transactions in Europe to date. The parties have agreed not to disclose the size of the transaction.
The planned production from the four solar plants will be equivalent to the annual electricity consumption of 120,000 Danish households and will mean an annual CO2e saving of 343,000 tonnes per year. The solar PV plants will be built on flat land behind dense living fences or woodland, which in addition to reducing visibility will provide excellent conditions for flowers, insects and wildlife. The land will be converted to organic farming.
Anders Dolmer, chairman of BeGreen: “We’re very pleased to enter into this partnership with Luxara, which has a strong portfolio and impressive expertise in sustainable energy production in Europe.”
“Acting now is crucial to reach Denmark’s ambitious 2030 target of reducing CO2e emissions by 70 per cent. Danish solar power can make a major contribution to the green transition and become an efficient supply of electricity to Danish households. With the historic agreement with Luxcara, we can now proceed immediately building the plants together with our regular partner Energi Innovation, so we can deliver the first green power to the market already this year, from day one without any public subsidy.
The green power from our solar PV parks is both cheaper and less environmentally damaging than the electricity produced from coal, gas or nuclear power. And transmission costs are far below those of offshore wind. In terms of supply, Denmark can also benefit from the fact that solar and wind power complement each other well. While the sun delivers electricity mainly during the day and in summer, when consumption is highest, the wind typically delivers most at night and in winter,” explains Anders Dolmer.
For Luxcara, a German asset manager with capital commitments from a wide range of mainly European insurance companies and pension funds, this is its first investment in Denmark.
Managing director Philip Sander, Luxcara: “We’re very pleased to be able to launch this unique solar PV project in Denmark and to do so without any public subsidy. The electricity will be sold to a buyer with a long-term power purchase agreement (PPA) or on the Nord Pool spot market.
We focus on acquiring high-quality sustainable energy assets in Europe. This first investment in Denmark fully meets our requirements. Solar PV parks developed and built by BeGreen are reliable, long-term installations that enjoy the support of the local authorities where they are located. The new parks will best contribute to accelerating the green transition, which is needed to counter climate change. We look forward to continuing our collaboration with BeGreen,” says Philip Sander.
BeGreen was advised by Deloitte (M&A, financial), EY (tax), Kromann Reumert (legal) and Krug & Schram (engineering). Luxcara was advised by CMS Deutschland, Reuther Rieche, Lundgrens (legal), Ramboll Energy (technical) and Marsh (insurance), among others.
Facts on the new solar PV plants
The agreement comprises four solar PV parks to be built in the Municipalities of Faxe (two parks), Vordingborg and Herning. The total area is 420 hectares. With an expected annual production of 414 million kWh, the solar PV plants will cover the total electricity consumption of about 120,000 households and reduce the CO2e footprint by 343,000 tonnes every year.
For landscape-aesthetic reasons, BeGreen’s solar PV plants are always sited on flat land and surrounded by dense living fences or woodland, providing good conditions for flowers, insects and wildlife. Agricultural production will continue on the land, such as organic lamb production and grass cultivation for protein extraction or biomass.
BeGreen develops, builds, maintains and operates large-scale solar PV parks and energy storage solutions, primarily in Denmark, Sweden and Poland. The business strategy is to build solar PV parks without any public subsidy in collaboration with local authorities, landowners, grid operators and investors – and to deliver sustainable electricity at stable, attractive prices to consumers and businesses. BeGreen has developed and built Denmark’s largest solar PV plant to date (113 MWp). The first 163 MWp subsidy-free solar PV park is currently under construction at the disused Vandel Airfield. The park will begin delivering power to consumers in the second quarter of 2021.
The company currently employs about 120 employees in Denmark, directly and indirectly through permanent partners.
Luxcara, headquartered in Hamburg, offers institutional investors investment opportunities in the international renewable energy market. The owner-managed company, founded in 2009, acquires, structures, finances and manages the operation of renewable energy plants and related infrastructure projects. The company is one of Europe’s most experienced asset managers in renewable energy investments and specialises in structuring power purchase agreements (PPAs) in the open market. Luxcara’s portfolio includes solar and wind power plants in Europe with a total capacity of more than 3 gigawatts and an investment volume of over EUR 3 billion.