Alight secures 12-year PPA for 64 MW solar plant in Sweden

Alight says it has obtained a 12-year power purchase agreement (PPA) for a 64 MW solar plant in Sweden. It says it will turn to non-recourse project financing, despite the conventional practice of financing PPA-backed solar assets with equity in the country.

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Swedish solar project developer Alight has secured a PPA from Sweden-based retailer Axfood for a 64 MW solar farm it is currently developing in Hallstavik, Stockholm county.

“Construction will begin this week,” an Alight spokesperson told pv magazine. “The solar plant should be operational in the second quarter of 2023.

The company said it will use non-recourse project financing for the project for the first time in Sweden. Traditionally, PPA-backed solar assets are financed with equity in the country.

“We secured a 12-year PPA,” the spokesperson said. “The plant will sell power at a fixed price that it's much lower than the average electricity price in Sweden over the past 12 months.”

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In December, Alight and Neoen secured Sweden's largest power purchase agreement to date. The two companies agreed to sell power to Swedish clothing retailer H&M Group from a 90 MW solar plant, which is now under development in Hultsfred, Sweden.

In December 2021, Alight signed a five-year PPA for an 18 MW solar park with Swedish restaurant group Martin & Servera. And in June 2021, it signed a 10-year deal for an 8 MW solar park it wants to build at an unspecified location in southern Sweden.

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