Scaling solar in the Nordics – and lessons for Europe 

Utility-scale solar projects in Sweden, Finland, and Denmark are flourishing, while battery storage and AI are reshaping what’s possible for grid stability and long-term power supply. With record-breaking generation and growing investor confidence, Nordic solar is redefining what’s possible for clean energy in colder climates.

The case for solar’s rise

Globally, solar generation in the first half of 2025 surged 31% year-on-year, expanding its share of the global electricity mix from 6.9% to 8.8%, with solar alone meeting 83% of the worldwide demand growth over that period, according to Ember Energy. These numbers underscore a sustained trend: clean power is a vital component of the world’s energy system.

In Europe, specifically, momentum is equally remarkable. In the same report, it is noted that solar added 37TWh of generation capacity, a 24% increase, in the first half of 2025. In June alone, solar became the continent’s largest single source of electricity, accounting for 22% of the EU’s power mix. 

Globally, renewables now comprise 46% of total installed capacity after a record 585GW of new capacity was added in 2024, a 15% expansion driven predominantly by solar, as reported by the International Renewable Energy Agency.

The rise of PPAs

A quiet revolution is reshaping Europe’s solar landscape as corporate power purchase agreements (PPAs) drive growth. The PPA market in the EU is strong, but facing headwinds amid increasingly negative prices and shifting framework conditions, as reported by Re-source. PPAs are essential to providing price stability and long-term visibility. Major players like H&M, Amazon and Google are not only cutting their own emissions but also expanding solar capacity through multi-year PPAs.

This corporate demand is unlocking steady investment and accelerating the scale-up of solar projects across the region. According to Solar Power Europe, an estimated investment of US$12 trillion is needed to achieve the global target of tripling renewable energy by 2030 – an immense target that underscores the scale of our challenge, yet remains within reach if momentum continues.

The next frontier: integrating storage

Now, the solar power sector in the Nordics stands at its next inflexion point, combining solar energy with battery storage. According to Alight’s head of revenue, in Montel’s trends in Nordic Energy 2025, adding storage to solar creates PPA products that offer higher capture values and are more attractive for corporate investment. 

Battery storage costs are falling rapidly as uptake booms, reports Ember Energy. Battery storage is the way forward; as shared in Montel’s ‘Trends in Nordic Energy 2025’ report, a 100MW solar facility paired with 30MW of battery storage with two hours’ capacity can significantly reduce operating costs through strategic dispatch optimisation. This exciting combination of falling battery costs, stronger PPA attraction, and faster operational time makes hybrid solar-plus-storage projects the new future for development.  

Ember Energy reports that growth in solar and wind generation in the first half of 2025 exceeded global demand growth by 109%, a signal that fossil fuel demand is nearing its peak. 

Yet the job is far from finished, and growth cannot be taken for granted. Grid congestion and permitting delays could slow the Nordics’ renewables advance if unaddressed. Sustained success will depend on better coordination between policymakers, developers, and operators to manage the technical realities of a fast-expanding energy system. Equally important, assets must perform as intended to maintain their attractiveness for future asset management investment.

The role of AI in the next phase

As solar capacity increases, artificial intelligence is rapidly emerging as a necessary tool of next-generation solar operations. With technical data now being captured every second from each asset, AI tools already enhance analysis by processing the large amount of data in models that become specific for each asset.

Another important tool is drone thermography with AI analysis for early detection of faults and degradation. Generative AI will enable cross-functional treatment of data sets, unlocking more intelligent management and operation of the asset. This will save time, reduce downtime, lower costs, and ultimately increase electricity production and revenue. 

The true promise of AI lies not just in technical operations, but also in financial and commercial strategy. 

AI can offer real-time operational decision-making tools, managing interactions with the grid and power market. As one example, whenever there are unexpected changes in preconditions for the asset, the grid is unbalanced or demand shifts unexpectedly, the solar plus battery asset could ramp up or down its power to the grid. These advances mean that the solar assets can be operated more profitably while delivering greater stability and support to the modern power grid.

The wider picture and a new generation of leadership

Solar has become an essential pillar of every serious energy strategy. Nordic companies and governments have shown that steady, resilient energy generation and the use of battery storage are possible even through the longest winters. This progress depends as much on people as on technology. 

As a new generation of assets and engineers taking on leadership roles, it highlights the importance of a robust, resilient and sustainable energy system at the heart of asset management within solar. Having been named among Ledarna’s Top 75 Future Leaders under 35 and recognised by Sifted as one of  Europe’s Top 100 Women in Tech, I see firsthand how  diverse leadership  and  fresh thinking are reshaping what’s  possible in renewable energy.

For those of us working on the ground, no two days look the same. At the heart of the energy transition, success depends on the relationship with asset management. If they don’t do their job right, the assets won’t contribute megawatts to the grid. This relationship can help the Nordic region carve out a leadership role in this global shift to renewable energy. 

The question for solar in Northern Europe is no longer whether it works; it’s how quickly and responsibly we can scale it. The journey may be complex and technical, but its momentum is here and now. We should really cherish the opportunity to improve the energy mix and start talking about weather-dependent power sources as part of the solution for a reliable and resilient power grid, as well as how we can get more women into technical roles and leadership positions. This constant evolution, the daily challenge, and the progress behind it, is exactly what makes working in solar so exciting.

Annelie Westén is team lead for technical asset management, Sweden, at Alight AB.