Norddeutsche Landesbank (Nord LB) is financing the solar park portfolio of Danish project developer European Energy A/S with €40 million ($47 million).
The deal marks the first structured financing of PV projects in Denmark, the bank said in a press release. The portfolio includes five projects with a total capacity of 50 MW, awarded to European Energy in the first cross-border German-Danish PV tender. They account for 70% of the portfolio, said Nord LB. The €40 million package will finance eight photovoltaic projects on agricultural land, with a total capacity of 80 MW in Denmark. The completion of the solar parks is planned by the end of the month.
Nord LB has previously worked with European Energy and financed several wind farms in Italy and Germany. The bank’s total financing volume for renewable projects is estimated at €8.3 billion.
At the end of November 2016, Germany’s Federal Network Agency published the results of the first cross-border PV tendering exercise with Denmark. The total volume secured was 50 MW, all of it by European Energy. The tender’s final tariff was €0.0538/kWh.
Originally two pilot auctions had been planned but no other country bordering Germany has been identified for a cross-border tender. The federal government intends to use the pilot tenders to test how best to implement the requirement of the EU Commission to open part of the tendering process to foreign bidders.