Neoen, a prominent player in the renewable power sector, has embarked on a significant venture in Sweden, marking the commencement of construction on a substantial 100MWp photovoltaic (PV) solar plant. This endeavor is being undertaken in collaboration with the Swedish independent power producer, Alight. Set to become Sweden's most extensive solar project to date, the Hultsfred solar farm is slated to become operational in 2025, serving the Småland province in the south-eastern part of the country.
In December 2022, a pivotal milestone was achieved with the signing of a 90MW power purchase agreement (PPA) for the Hultsfred project. The multinational fashion retailer, H&M, entered into this agreement with Neoen. According to the PPA terms, Neoen will supply H&M with 95% of the renewable energy generated at the solar site, accompanied by guarantees of origin.
The execution of engineering, procurement, and construction (EPC) contracts is entrusted to a consortium of construction firms, Bouygues Energies & Services and Solkompaniet.
Harald Överholm, CEO of Alight, commented on the project's significance, emphasizing its alignment with Alight's mission to augment the presence of green energy on the grid. He noted that the Hultsfred solar farm represents a notable stride forward for Sweden as it accelerates its transition toward a more sustainable future.
The Hultsfred solar facility will be integrated into the local grid distribution system, facilitated by the energy infrastructure and networks company, E.ON. Martin Höhler, CEO of E.ON Energidistribution, highlighted the importance of this addition to electricity production in southern Sweden, where there is a burgeoning demand for affordable electricity. The interest in integrating such facilities into the grid continues to grow, benefiting both climate objectives and the expansion of Sweden's electricity generation.
This venture follows Alight's announcement in June regarding its plans to construct a 64MW solar PV project in Hallstavik, Sweden, accompanied by a PPA with a Swedish retailer.
Furthermore, Neoen has secured a significant role in France's renewable energy landscape, being awarded the second-highest capacity in the country's recent government-backed solar PV tender, securing a substantial 226MW capacity. This underlines Neoen's commitment to the global transition toward sustainable and renewable energy sources.