Investment Policy

All Nordic Solar Energy’s investments must follow the investment policy. The board of directors controls in every single case that the investment policy is followed and the shareholders’ interests are guarded.

The investment policy may be adjusted on an ongoing basis by the board of directors of NSE in order to reflect the shareholders’ interests and market evolution.

Investment object

NSE invests in solar energy facilities within the European Union. The solar energy facilities must be located in individual companies, and investments may be made either by establishing companies which take over all the rights, obligations and contracts for the solar energy facility or through investment in an already established company.

NSE’s investments are characterised by:

• The purchase of fully developed solar energy projects which through injections of equity can be constructed and commissioned, and where due diligence has been performed.
• The purchase of solar energy facilities in operation.

Thus, NSE will not act as project developer and does not invest in land without a complete contract for the construction of the solar energy facility including the necessary permits, contract on the setting up the facility, service agreements, debt financing etc.

Return and risk

Nordic Solar Energy aims at a return of 10-14% p.a. on the overall solar energy portfolio. However, return must always be viewed in relation to the risk associated with each investment. As an example, investments in German solar energy facilities are usually viewed as low risk because of the quality of the German government guarantee and the size and maturity of the German solar energy market. Consequently, investments in German solar energy facilities are less profitable, but nevertheless attractive in some cases by virtue of the low risk.

As the solar energy markets mature in each EU country, the return available in the markets is expected to decline. Thus, it cannot be excluded that at some time NSE may have to reduce its 10-14% p.a. return target. If this return target is reduced, it should reflect that the risk is reduced and the overall investment is attractive.