Sweden launches record-breaking solar farm, with H&M taking most of its power

A solar farm at a former airport in southern Sweden has started generating electricity. Hultsfred is the country’s largest solar power plant. The project was made possible in part by a long-term power purchase agreement with fashion retailer H&M, helping it meet its climate commitments. The news was reported by ESG News.

From airport to power plant

Hultsfred Solar Farm covers 130 hectares and consists of 174,000 solar panels. It will generate around 100 GWh of electricity annually.

The project was developed by Alight and Neoen, which describe it as a milestone for Sweden’s energy sector. For Neoen, it is the company’s fourth operational project in Sweden, bringing its total installed capacity in the country to 304 MW.

“Bringing this solar farm online with our partner Neoen and a long-term power purchase agreement with H&M represents a milestone for us and proves that the Swedish market can rapidly deliver large-scale, unsubsidized renewable energy. This is a landmark achievement for renewable energy generation in Sweden,” said Warren Campbell, CEO of Alight.

Solar power plant. Source: Unsplash

Private capital instead of subsidies

Construction was made possible by €53 million in financing from Danske Bank (CZK 1.3 billion). Project development and construction work was carried out by a consortium of Bouygues Energies & Services. A key factor in the successful construction was a long-term power purchase agreement signed with fashion retailer H&M Group in 2022. The company will purchase 95 percent of the electricity generated. This gave the project stable financing and investors certainty of returns.

H&M is using the project to achieve its goal of using 100 percent renewable electricity by 2030. Marcus Hartmann, head of sustainability for H&M’s Nordic region, emphasized:

“As a global fashion company, we have both the ability and the responsibility to drive the energy transition.”

More than just a source of electricity

Hultsfred is not just a record-setting project—it also shows how private companies can accelerate the decarbonization of the energy sector. Long-term contracts provide stability when electricity prices fluctuate and pave the way for financing additional renewable energy sources. With this agreement, H&M is gradually progressing towards its climate target. But its role goes beyond its own consumption: as a major power buyer, it has become a key driver, enabling the power plant to be built.

Hultsfred Solar Farm proves that large-scale renewable energy projects can be built quickly and without subsidies if the private sector backs them and companies support them through long-term offtake agreements. For Sweden, it represents a significant shift in the energy mix.

The project also sends an important signal to other countries: stable private investment and partnerships with major power buyers can be an effective way to expand clean energy beyond the scope of government programs. For Czech companies, this model could provide inspiration for achieving energy independence while also contributing to the decarbonization of the economy.