3 quick questions for Our New Energy’s Mikkel Kring
As we get ready for the 6th edition of the Solarplaza Summit Nordics PV & Storage - taking place next month (16 September) in Copenhagen - we took some time to catch up with local market expert Mikkel Kring. As partner at Our New Energy, he’s been part of our events in the region for many years now, both as speaker and advisory board member.
Mikel elaborated on three quick questions about the current state and future outlook of the Nordic renewable energy market, particularly focusing on the rising interest in battery energy storage systems (BESS) and the evolving power purchase agreement (PPA) landscape.
Mikkel Kring speaking at the Solarplaza Summit Nordics PV & Storage 2024 (Copyright, Solarplaza 2024)
What’s hot in the Nordics at the moment?
BESS is all over the place. With high volatility, record-breaking frequency of negative spot prices, and very high balancing prices, the market signals are clear. Integration of additional renewable capacity will require more storage, and investors are flocking to deliver it. Incumbents and newcomers are boosting pipelines in pursuit of speed to market, as the outlook remains uncertain. Market depth and long-term profitability are difficult to determine, and long-term fixing contracts remain rare. As ONE, we are actively advising on BESS revenue strategies across the Nordics and are experiencing a rapidly evolving market.
How is the PPA market doing?
It has been a slow year for solar PPAs across the Nordics. Low spot and future prices, alongside dropping capture rates for solar, have created a difficult PPA environment. Our PPA Tracker shows 6 executed deals YtD across Denmark, Sweden, Finland, and Norway, aggregating up to around 150MW. For context, our PPA Tracker shows 18 solar PPAs in 2024, with an average size of 30MW.
What's your outlook for H2, 2025?
We are in dialogue with many corporate off-takers who are preparing for the PPA market, but we don’t expect them to enter until next year. Hence, the lack of transactions is not necessarily driven by price assessments, but rather hindered by readiness. We expect an additional 200-400 MW’s worth of solar PPAs to be transacted here in H2, 2025. This will leave a substantial number of projects without a PPA. In the absence of an active long-term PPA market, a shorter-term hedge market is emerging. Over the past 4 weeks alone, we have executed 2 hedges for solar assets, looking to secure against negative prices. We expect to see more of this in the months to come.
Mikkel Kring will share more insights on stage during the Solarplaza Summit Nordics PV & Storage, on 16 September 2025 in Copenhagen, Denmark. Make sure to get your tickets in time.
Mikkel Kring
Partner
