By Nora Buli
OSLO (Reuters) - A joint venture of subsidiaries of Germany's Commerzbank (ETR:CBKG) and Norway's Norsk Hydro will invest 600 million euros ($599 million) to build 1 gigawatt (GW) of solar capacity in Denmark, project developer GreenGo said on Tuesday.
The total energy production of the targeted project portfolio corresponds to around 4% of Denmark's annual electricity consumption, enough to power more than 300,000 Danish households, GreenGo Energy said.
Under the partnership agreement, which covers investments over the next three to five years, Commerz Real and Hydro Rein will acquire projects from GreenGo Energy and provide financing through development and construction to commissioning (COD).
The joint venture has already bought two projects totalling 362 megawatts (MW), which are scheduled for commissioning in 2026, GreenGo Energy said.
The Danish government is targeting 100% renewable energy for the country's power consumption by 2027, and a solar power capacity of 20 GW by 2030.
The deal marks Hydro Rein's first investment in Denmark as well as its first foray into solar power in the Nordics, its chief executive Olivier Giradot said in a statement.
The GreenGo Energy deal marks the second investment for Norwegian investors into Danish solar developers this month, after energy firm Equinor agreed to buy BeGreen.
($1 = 1.0015 euros)