HSH Nordbank provides $24.6 million financing for 37.9 MW PV project in Denmark

The Vandel 1 solar project is relying on inverters provided by the Taiwanese power electronics manufacturer Delta.

The German financial services provider HSH Nordbank announced it will finance part of the construction of a 37.9 MW PV plant in Vandel/Billund, in the Danish southern province of Jütland.

The company said it will provide €23 million ($24.6 million) in funds for the Vandel 2 project, which is being developed by local investment firm CM Finans. HSH Nordbank said the project is the second phase of a broader installation including the Vandel 1 project, which was completed by local renewable energy developer European Energy A/S in 2015.

HSH Nordbank has not said when construction on the Vandel 2 project will be launched, nor has it provided more technical or financial details about the plant. The company added, however, that it has also financed two unspecified smaller solar parks in Denmark in the past two months. “We hope that this transaction will be followed by several others,” said the head of the company’s energy division Lars Quandel.

The Vandel 1 project, which is currently Denmark’s largest PV plant, was sold by European Energy A/S to a fund managed by Allianz Global Investors GmbH in December 2015. This project was financed by HSH Nordbandk with €64.5 million ($69.2 million).

The installation is comprised of 126 individual solar plants of 400 kW capacity, built on a former NATO military base and covering 108 hectares of undulating land. Taiwan-headquartered producer of power electronics Delta provided 1,008 of its string inverters for the project.

At the time, European Energy said the purchase price was not yet final and would depend upon a number of factors including the feed-in tariff rate which the plants will receive. The company noted that the final feed-in tariff for the projects may be higher than the base feed-in tariff, due to a specific tariff program.