Ep219: Northern Lights: Alight's CEO talks about solar in Scandinavia and the rest of Europe
Sep 1, 2023
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Dr. Harald Överholm, CEO and founder of Alight, discusses the opportunities and challenges in the European solar market, including solar PPA demand in Scandinavia and other European regions. They also cover Alight's approach to the market, deploying capital in Europe, the equipment supply chain, and the importance of energy storage in the solar industry.
The demand for solar PPAs in Scandinavia is driven by factors such as market awareness, power system volatility, and climate concerns, with customers also contributing to building new solar plants.
Alight focuses on corporate off-takers in Scandinavia and the Baltic states, offering customer-centric solar solutions, targeting customer needs and preferences, with plans to incorporate battery storage and emphasizing proper asset management and long-term sustainability.
Deep dives
Demand for Solar PPAs in Nordic Region
The demand for solar Power Purchase Agreements (PPAs) in the Nordic region, particularly in Sweden, Norway, and Finland, is fantastic. The demand is driven by three main factors. First, the growing awareness in the market and the increasing number of new buyers entering the solar PPA market. Second, the need for companies to protect themselves against volatility in the power system. PPA's provide stability and help guard against market fluctuations. Lastly, the demand for climate action and companies' commitment to taking clear steps to address climate issues. The majority of customers signing PPA's also contribute to building new solar plants, adding to the appeal of solar PPAs.
Focus on Corporate Offtakers and Customer-Centric Approach
The lights, a European solar developer, focuses primarily on corporate off-takers and adopts a customer-centric approach. They work on building customer relationships and helping them buy power in a better way through solar solutions. Their primary focus is on corporate PPAs rather than utility PPAs or government auctions. By concentrating on corporate demand, the lights positions itself in underutilized and underserved solar situations, targeting customer needs and preferences.
Expansion Plans and Challenges
The lights has primarily focused on markets like Sweden, Finland, and the Baltic states for grid-connected projects. They have pioneered large-scale solar in Sweden and established a strong footprint in these regions. Behind-the-meter projects are developed based on customer requirements, serving customers' industrial premises and expanding their operational footprint accordingly. While solar holds promise in almost every European market, the lights aims to venture into challenging and underexplored markets, leveraging their expertise and offering customer-centric solar solutions. The company also recognizes the importance of co-locating battery storage with solar projects and plans to incorporate it in future projects. They acknowledge the ongoing debates around land use and grid applications but remain optimistic about overcoming these obstacles with specialization and industry collaboration. Additionally, the lights emphasizes the significance of proper asset management and long-term sustainability, including responsible panel disposal and recycling as part of their commitment to the environment.
Dr. Harald Överholm, CEO and founder of Alight, joins Todd Alexander to talk about the opportunities and challenges in the European solar market. They cover solar PPA demand in Scandinavia and other European regions, which markets are promising for expansion, Alight’s different approach to the market and how that has been received, the process of deploying capital in Europe, the equipment supply chain, Alight’s involvement in energy storage, and more.
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