Encavis, Solgrid sign deal to partner on over 100 MW of solar projects in Sweden

Encavis AG signed an investment agreement with Norway's Solgrid AS for a portfolio of more than 100 MWp of subsidy-free solar projects in southern Sweden.

The portfolio includes an approximately 5-MWp solar park in Varberg already connected to the grid. Another five projects with a capacity of over 100 MWp are at various stages along the development value chain, nearing ready-to-build status.

The projects are expected to sell their output to "reputable off-takers" through long-term power purchase agreements, Encavis said in a Dec. 21 news release.

The companies also plan to jointly realize an additional pipeline of solar projects in Sweden and Norway. They will establish a jointly owned company, in which Solgrid will hold 10% as a long-term participation.

The new company will take over ready-to-build photovoltaic projects and will secure project financing, construction, and operation and maintenance services, as well as the origination and structuring of long-term power contracts.

"These agreements will strengthen our ambition of building 500 MWp of solar power plants in Sweden and Norway before 2025," said Solgrid CEO Kristin Melsnes.

In January 2020, Encavis released a plan to double its renewable power generation capacity from 1.7 GW to 3.4 GW by 2025.