Hafslund, Magnora and Helios start a new solar company in Norway

In connection with the new facility, Magnora will carry out a private placement to which Hafslund will contribute NOK 100 million. In doing so, Hafslund would end up as the single largest investor in Magnora.

Hafslund, Magnora and Helios companies aspire to develop 1,000 megawatts of solar power to ensure more renewable energy for Norway. The photo was taken from a solar park in Sweden, and has nothing to do with the project from the three companies. Frederick Sandberg / TT

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All three parties have an ambition for the newly established company to develop 1,000 megawatts of solar power to ensure more renewable energy for Norway, Magnora writes in a stock exchange announcement.

Hafslund and Magnura will own the new solar company with 40 percent each, while Helios will own 20 percent.

In addition to the NOK 100 million that Hafslund will inject into Magnora, the Oslo municipal company will also contribute NOK 15 million to development capital for the new company.

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Hafslund got the first right

The new company, whose name is not yet known, will develop the solar projects from scratch until they are ready for construction, after which Hafslund will have the first right to buy the projects.

– Hafslund wants to take an active role in the development of solar energy in Norway and believes that new solar projects can be built faster than similar projects in hydroelectricity and wind energy. This will increase the energy supply, and will contribute to lower energy prices for homes and industry in Norway”, says Havslund Executive Vice President, Martin S. Lundby.

Enter LOI

As part of the agreement, Hafslund will, as mentioned, inject NOK 100 million into Magnora. This would give Hafslund an ownership stake of more than five percent, meaning the company is the largest single investor in Magnora.

The two companies also entered into an agreement of intent on renewed cooperation, which means that they will seek cooperation where it is considered desirable and enhances value for both parties.

Magnora is very satisfied that Hafslund sees the value in the Magnora development portfolio and the potential, says Magnora’s general manager, Eric Snef.

The report states that Hafslund is Norway’s second largest renewable energy producer, wholly or partly owns more than 80 hydroelectric power plants in Norway.

In July, Hafslund also partnered with renewable energy company Cloudberry on a Swedish wind power project.

Still a small contributor

To put into perspective how far the new solar company wants to develop it, at the end of 2021 there was 186 megawatts of solar power connected to the grid. This gives an annual production of 0.15 terawatts, or one per thousand of Norway’s energy production.

Solar power plants provide relatively little electricity compared to wind power plants, and a 7 MW plant can provide about 6.4 GWh of energy per year. It covers the consumption of 320 families.