Danish solar company Nordic Solar and US private equity firm EIG have signed an agreement on what the former calls a “flexible credit facility” that could help generate funding for the company’s future solar projects.
The facility, which has a value of €330 million (US$359 million), will provide capital for Nordic Solar’s ambitious development goals, with the company planning to increase its operating capacity from 358MWp today to 2GWp by the end of 2025. Nordic Solar will be able to draw funds to cover construction costs and additional expenses arising in the development stage, and part of the money will be available for investment in “new project opportunities”.
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While Nordic Solar did not announce which projects will receive funding, the company’s recent acquisitions suggest that it could benefit from additional financial investment. Earlier this year, Nordic Solar purchased two Swedish solar plants, with a combined capacity of 83MWp, which are expected to begin commercial production in 2027 and 2028 respectively. The company’s total development pipeline totals 1.8GWp of power, and its leaders are eager to expand this further.
“The agreement between Nordic Solar and EIG is highly attractive and provides the company with unique opportunities in terms of realising its strategic growth targets,” said chair of the Nordic Solar board of directors Christian Sagild. “EIG is a strong capital partner and is highly experienced in Nordic Solar’s area of operation.”
The news is EIG’s latest involvement in the solar sector, following a US$90 million investment into US solar company Industrial Sun, to build new solar projects in the state of Texas.
This investment further strengthens our commitment towards reaching our global climate ambitions and advancing the energy transition,” added EIG managing director Walid Mouawad.