Danish renewables developer Eurowind Energy A/S has received EUR 48 million (USD 52m) in debt from Denmark’s AP Pension to back the construction of solar park projects in Portugal.
The loan agreement was signed last week and was the Danish pension group’s involvement in a direct lending transaction for green energy projects for the very first time.
The debt financing will facilitate the installation of six photovoltaic (PV) farms across Portugal within the coming year. Initial steps towards the construction phase have already been taken, according to the statement.
The facilities' future output will add to the generation from Eurowind Energy’s 22-MWp Triana PV park in the Lisbon district of central Portugal, which was brought live in January. Together, the seven plants will produce some 142,000 MWh of electricity per year which will be enough to cover the annual power consumption of around 35,000 homes.
AP Pension noted it expects the funding agreement to deliver a stable return to its investors. The contract is also aligned with its goal to have 18% of its total assets invested in green projects in 2025, with the share planned to reach 25% in 2030.