The project marks the beginning of a strategic expansion of the company's solar energy production, involving the integration of BESS into the future project development planned by Nordic Solar in the past few years to be ready for the development which the market is facing, ie increasing electrification and implementation of more renewable energy.
"Energy market trends indicate that a combination of solar energy and battery storage will play a key role in the energy transition. In the European market where we are active, there is a strong focus on being able to combine the production of solar energy with storage , not least by the system operator, because flexibility is absolutely crucial to the energy system now as well as in the future.
"Solutions that help balance the electricity grid are needed, and, in this connection, batteries play an important role. As a solar energy producer, we are able to contribute positively as we produce more renewable energy," says Nikolaj Holtet Hoff, CEO of Nordic Solar.
With the commencement of its construction in Borup, Nordic Solar is also turning the first sod for a broader business model. Nordic Solar has an additional 25 battery storage projects in the pipeline, and the battery storage capacity of the total portfolio is almost 1 GWh.
"We expect the market for battery storage to grow rapidly in the coming years and entering the BESS market opens up a number of new opportunities for increasing value creation of our European solar energy projects on various levels. Batteries are a strong addition to our business model with the potential for new revenue streams, providing an extra leg to stand on in the rollout of more renewable energy by all the projects in our development portfolio," says Hoff.
The Borup battery project is the result of a successful collaboration with Hillerod Municipality and Hybrid Greentech, which in the spring won the Green Power Award 2024, handed out by the Danish trade organization Green Power Denmark, for its innovative approach to the development of intelligent storage solutions that contribute to electrification and transition.
Hybrid Greentech also participates in both the construction and operation of the battery. In recent years, Nordic Solar has focused on its own development of solar energy projects, and the battery project in Borup is no exception.
"As part of our strategic focus on battery solutions, we have made sure to prepare our organization for developing and subsequently building the projects ourselves. In terms of skills, this means that we are ready to execute on the co-location of batteries, which will be established with both existing and future solar parks going forward," Hoff concluded.