EDF and Swedish Pension Fund to Allocate €1.5bn for Green Energy

Alternative Energy

Discussions are in progress to incorporate 512.7MW of operational and evolving hydropower capacity into the partnership’s portfolio.

EDF and the Swedish pension fund managed by Sweden’s National Pension Funds Council have announced intentions to invest €1.5bn ($1.61bn) in sustainable energy projects across the Scandinavian region.

This investment aims to bring an additional 950MW of clean energy capacity over the next four years, up until 2027.

The collaboration has integrated 487MW of solar and wind energy capacity, with plans to encompass the remaining capacity in the initial months of 2025, reaching a total of 1.4GW.

Discussions are ongoing to introduce 512.7MW of operational and evolving hydropower capacity to the partnership’s portfolio.

The strategic alliance is a joint endeavor to expedite the process of reducing carbon emissions in the Scandinavian region, with potential prospects to extend the agreement to neighboring nations.

EDF will maintain a majority share of 52% in the assets.

Their entire 487MW capacity is currently appraised at €550m.

This valuation does not factor in supplementary returns linked to asset management, operation, maintenance, or other corporate services.

The sustainable energy portfolio is projected to generate sufficient electricity to power 350,000 households annually, offsetting 300,000 tonnes of CO₂ emissions each year.

EDF’s CEO, Jean-Bernard Lévy, commented: “Today, we have broadened our commitment to sustainable energy to promote the advancement of renewables in the Scandinavian region more efficiently and competitively.

“Strategic collaborations like this enable us to merge our expertise in clean energy and our financial stability with that of Sweden’s National Pension Funds Council, a truly forward-thinking partner, building on our partnership that has flourished over the years.”

In August 2023, EDF and the Swedish pension fund concluded their pact to jointly invest in a Danish sustainable energy portfolio with a 1.1GW capacity, with potential opportunities for expansion.

The portfolio, consisting predominantly of wind (70%) and solar (30%) energy, is valued at €1.1bn.

EDF will possess a 53% majority share in the portfolio, while the remaining 47% will be held by the pension fund managed by Sweden’s National Pension Funds Council.