Alight AB to Construct Sweden’s Largest Solar Farm in Hallstavik
Published · 3 min read
Sweden’s renewable energy sector is set to witness a significant boost as solar developer Alight AB prepares to embark on the construction of a massive 64-Megawatt (MW) solar farm in Hallstavik, located just outside Norrtalje. The ambitious project comes in response to a recently signed power purchase agreement between Alight and local food retail giant Axfood AB, propelling the nation’s efforts toward sustainable energy practices.
Alight will build, own and operate the solar farm in Hallstavik, a town north of Stockholm, and Axfood will purchase the electricity for “a low, fixed price for 12 years”, the firms said without further comment.
Alight announced on Wednesday that construction work for the groundbreaking solar farm is scheduled to commence this week following the receipt of a crucial permit to install approximately 92,000 solar panels over an expansive area of 71 hectares. The project aims to generate an impressive output, enough to power communities and reduce reliance on conventional fossil fuels.
“While we have our sights set on continuing to reduce our environmental impact, we also want to contribute to increasing the amount of renewable electricity on the market,” said Axfood CEO Klas Balkow in a comment to Reuters.
Under the terms of the new offtake contract, Alight will be the mastermind behind the project, responsible for building, owning, and operating the solar facility. On the other hand, Axfood has committed to purchasing the farm’s clean energy output for a minimum period of 12 years, showcasing their dedication to environmentally friendly practices.
Anticipated to be completed by the second quarter of 2024, the Hallstavik solar plant will represent a remarkable milestone in Sweden’s renewable energy landscape. With its estimated date of commissioning, the facility will be approximately three times larger than any other solar park in the country, reflecting the growing commitment to harnessing the power of the sun.
The Hallstavik project has assumed even greater significance as it replaces a previously planned solar farm in Skane due to permitting delays. Despite the setback, Alight’s determination to bring solar energy to the region remained unwavering, and the Hallstavik location was chosen as the ideal replacement site for the innovative solar endeavor.
What makes this project even more remarkable is that it will be Sweden’s first solar asset financed through a dedicated non-recourse debt facility. The financing will be facilitated by renowned financial services group SEB, further reinforcing the financial viability and attractiveness of renewable energy ventures.
For Axfood AB, the installation of the Hallstavik solar farm aligns perfectly with its ambitious goal of deploying at least 40 solar arrays by 2025 at the latest. The food retail group has been at the forefront of adopting sustainable practices, boasting a portfolio that includes Sweden’s largest rooftop solar power system at its newly built warehouse in Balsta, as well as a substantial solar array at its fruit and vegetable warehouse in Landskrona.
With this milestone solar farm, Alight AB and Axfood AB are poised to make a significant impact on Sweden’s renewable energy landscape. As construction commences, the nation eagerly anticipates the unveiling of this colossal solar facility, bringing sustainable energy solutions closer to reality and setting an example for the rest of the world to follow.
