GreenGo Energy, one of Europe’s leading solar developers, has entered into a new GW-scale partnership agreement with a joint venture between Commerz Real and Hydro Rein, two significant institutions in the renewable energy industry. The parties target to execute a total portfolio of 1GWp+ from GreenGo Energy’s significant utility scale solar PV portfolio in Denmark, corresponding to an investment from the joint venture of more than 600 million EUR over the next 3-5 years.
The total energy production of the targeted project portfolio corresponds to approximately 4% of Denmark’s total yearly electricity demand today, equivalent to the demand of +300,000 Danish households. Under the partnership agreement, the joint venture will acquire projects from GreenGo Energy and provide financing through development and construction to commissioning (COD).
First two solar projects to be commissioned in 2026
The first two solar projects have already been acquired by the Joint Venture, a 170MWp project located in on Denmark’s west coast and one 192Wp project in the south Denmark,. Construction is scheduled to commence in 2024, completion is expected for 2026.
Strong partnership will accelerate the energy transition in Denmark
According to statements by the Danish government, all the electricity needed by the country is to originate from renewable sources by 2027. And the government targets a PV capacity of 20 GW by 2030 to reach the firmly set 2030 goals.
Barkha Mehmedagic, Global head of Institutional Sales and Group Treasury at Commerz Real comments:” The Danish investment market for photovoltaics is still relatively young and is seeing a correspondingly dynamic development. This offers the potential for growth and diversification for our institutional investors in particular “, and continues “With Hydro Rein and GreenGo Energy we also have experienced partners firmly rooted in the Scandinavian market by our side.”
Olivier Giradot, CEO of Hydro Rein comments:” We are proud to announce our very first investment in Denmark together with Commerz Real. This is also REIN’s first solar investment in the Nordics. The investment will diversify our Nordic portfolio in terms of technology and production, and we see great potential in combining wind and solar to help decarbonize major industrial players. Backed by strong governmental ambitions, we look forward to explore more opportunities in Denmark”.
Karsten Nielsen, CEO of GreenGo Energy comments. “Together with Commerz Real and Hydro Rein we can fully leverage the complementary capabilities of all the parties involved, leaning on the extensive experience in renewable investments and a strong industrial presence in the Nordic power market. This first GW-scale partnership agreement for our Mermaid portfolio in Denmark is a big milestone, helping Denmark to accelerate the energy transition with significant impact well before 2030”.
About GreenGo Energy
GreenGo Energy was founded in 2011 with the vision to accelerate conversion to renewable energy generation, by an innovative and scalable business model. GreenGo Energy’s 360 full services platform includes origination, development, offtake, engineering, procurement, construction management, O&M and asset management services, fully tailored and bespoke to our client’s needs and investment profile.
GreenGo Energy now has more than 7.5GWp of solar and storage projects in various stages of development and construction in selected U.S. states and Northern Europe, of which more than 3GWp has been contracted through partnership agreements with tier 1 investors in the renewable space.
About Commerz Real
Commerz Real is the asset manager for real asset investments of German Commerzbank Group and has over 50 years of international market experience. More than 800 employees manage assets of around 34 billion euros at the Wiesbaden headquarters and 17 other locations and branches in Germany and abroad. The company combines comprehensive know-how in asset management and a broad-based structuring expertise to deliver its signature range of services of fund products focused on tangibles and bespoke financing solutions. The fund spectrum includes the open-ended real estate fund Hausinvest, Germany’s first retail impact fund for real assets Klimavest, institutional investment products as well as entrepreneurial participations.
Commerz Real has been investing in solar energy since 2005 and in wind power plants and other energy infrastructure segments since 2016. The company currently manages more than 50 solar power plants and over 40 onshore and offshore wind farms in Germany and Europe with a total nominal output of more than 1.5GW.
About Hydro REIN
Hydro Rein is a leading provider of renewable energy solutions to industrials, fully owned by the global renewable energy and aluminium company Hydro. Hydro Rein has a diversified portfolio of 16 projects under development in core markets in the Nordics and Brazil. The company has an ambition of 3GW in construction or operation (gross) by 2026, leveraging on a unique customer offering and Hydro’s century-long track record in building industries that matter.
Hydro Rein is a wholly-owned subsidiary of the aluminium and renewable energy company Norsk Hydro, in which the Norwegian government also holds a stake of about one third. The company has already been active in the field of hydroelectric power for more than one hundred years.