Danish energy company Nordic Solar has signed a credit agreement for its inaugural battery storage project, located in Borup near Hillerød, just north of Copenhagen. The agreement provides funding for construction, which will transition to long-term project financing once the facility is connected to the grid. The Borup battery project, which commenced construction in the third quarter of 2024, will have a storage capacity of 5 MW/10 MWh. It is scheduled for completion by the end of the first quarter of 2025.
This project marks a significant milestone as Nordic Solar’s first battery storage initiative in Denmark. With additional battery projects planned across Europe, Nordic Solar aims to increase its portfolio of hybrid renewable energy projects substantially in the coming years. The company expressed its satisfaction with the successful financing arrangement, which supports its vision for expanding clean energy solutions.
Holger Bang, Chief Investment Officer at Nordic Solar, said, “It’s an important agreement we’ve entered into with Ringkjøbing Landbobank on our first Danish battery project, and we’re very pleased that it’s now been concluded. We’ve been extremely satisfied with our collaboration on the financing and found Ringkjøbing Landbobank, throughout the process, to be a highly competent business partner who is well-versed in the BESS market. To ensure scaling and the continued roll-out of battery storage projects in the Danish and other markets, it’s crucial that energy producers and financial partners can enter into agreements that focus on strengthening the conditions which, also in future, will make BESS investments attractive as we expect these to play an increasingly prominent role in the European energy market.”
Dan Junker Astrup, Credit Manager at Ringkjøbing Landbobank, mentioned, “For more than 30 years, Ringkjøbing Landbobank has contributed to financing renewable energy in connection with the green transition. We see the development of the BESS market as an important step in the development at a time when the profile risk of renewable energy production is increasing. The BESS market in the Nordics is still in its infancy, and we are therefore pleased to have successfully concluded this credit agreement in collaboration with EIF (European Investment Fund) and Nordic Solar.”
Ringkjøbing Landbobank is also satisfied with the agreement, which helps batteries gain ground as a new addition to investments in renewable energy projects in Denmark and other countries. At the end of Q3 2024, Nordic Solar will have battery storage projects totalling 311 MW in its development portfolio by means of hybrid projects across European markets, where the company currently has operations in 13 countries.
