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Commerzbank, Norsk Hydro to invest 600 million euro into 1 GW of Danish solar
Global Banking & Finance Review®
Company
By Nora Buli
OSLO (Reuters) – A joint venture of subsidiaries of Germany’s Commerzbank and Norway’s Norsk Hydro will invest 600 million euros ($599 million) to build 1 gigawatt (GW) of solar capacity in Denmark, project developer GreenGo said on Tuesday.
The total energy production of the targeted project portfolio corresponds to around 4% of Denmark’s annual electricity consumption, enough to power more than 300,000 Danish households, GreenGo Energy said.
Under the partnership agreement, which covers investments over the next three to five years, Commerz Real and Hydro Rein will acquire projects from GreenGo Energy and provide financing through development and construction to commissioning (COD).
The joint venture has already bought two projects totalling 362 megawatts (MW), which are scheduled for commissioning in 2026, GreenGo Energy said.
The Danish government is targeting 100% renewable energy for the country’s power consumption by 2027, and a solar power capacity of 20 GW by 2030.
The deal marks Hydro Rein’s first investment in Denmark as well as its first foray into solar power in the Nordics, its chief executive Olivier Giradot said in a statement.
The GreenGo Energy deal marks the second investment for Norwegian investors into Danish solar developers this month, after energy firm Equinor agreed to buy BeGreen.
($1 = 1.0015 euros)
(Reporting by Nora Buli; Editing by Emelia Sithole-Matarise)
Renewable energy is energy generated from natural resources that are replenished constantly, such as sunlight, wind, and water. It is considered more sustainable compared to fossil fuels.
Solar power is energy harnessed from the sun's rays using solar panels. It is a clean and renewable source of energy used for electricity generation and heating.
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity while maintaining their separate identities.
Investment refers to the allocation of money or resources into an asset or project with the expectation of generating a profit or income over time.
A gigawatt (GW) is a unit of power equal to one billion watts. It is commonly used to measure the output of large power plants or the energy consumption of large facilities.
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