Danish pension company AP Pension has entered into a loan agreement with Eurowind Energy for the development of solar parks in Portugal.

The agreement of €48m will help Eurowind Energy continue its solar cell projects, which are expected to cover the electricity consumption of the equivalent of 35,000 homes.

AP Pension stated that it expected the agreement to deliver stable returns to its customers.

With the agreement, a further six solar parks are to be built during the coming year.

“For AP Pension, the loan financing for Eurowind Energy is a long-term investment that will help deliver a stable return to our customers,” commented AP Pension investment director, Rasmus Cederholm.

“At the same time, we are establishing a good partnership with Eurowind Energy, which can now put an additional turbo on their work to build a total of seven solar parks in Portugal for the benefit of the green transition.”

Cederholm added that the investment was a step on the way to fulfilling AP Pension’s ambition to have 18 per cent of its assets invested in green investments by 2025 and 25 per cent by 2030.

“It is not often that we see this kind of loan financing directly for green projects in the pension sector, but we see it as an obvious investment opportunity where we get additional energy investments in the portfolio,” he continued.

“Eurowind Energy has a lot of experience in their field, and we are convinced that it will be an investment that will benefit both parties and not least the green transition, which we would very much like to continue to contribute to through our investments.”

It is expected that the seven solar parks in Portugal will be able to deliver an annual production of approximately 142,000 MWh, corresponding to the electricity consumption of approximately 35,000 households.

Commenting on the agreement, Eurowind Energy head of project finance, Benjamin Schmitt, said: “With the agreement in place with AP Pension, we can now continue to work on the realisation of our solar parks in Portugal.

“The project contributes to our ambition to significantly reduce the use of fossil energy in Europe. It is extremely positive that AP Pension can see the many good perspectives in financing part of our solar cell project in Portugal.

“It just confirms to us that it is a really good project that we are working on when a large financial investor like AP Pension will be responsible for the loan financing.”

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