The Nordics and Baltics are at the forefront when it comes to electricity generation from renewable sources. In 2021, more than two thirds (68%) of all GWh generated in the region came from hydro, wind and solar. Carbon-emitting burning of fossil fuels – coal, oil and gas – amounted to three per cent.

Compare that to the entire continent of Europe, where (in 2020) the share between fossils (38%) and renewables (35%) was roughly even. Looking at global electricity generation (also 2020), we find that 61% of the world’s roughly 27 million GWh had fossil origins. Renewables, meanwhile, delivered 26%, or close to seven million GWh.

But the scene is changing. Thirty years ago, renewables meant hydropower. Wind and solar existed, but with negligible impact on electricity production. Even in Denmark, a global wind power pioneer, only about three per cent of electric power came from wind turbines in 1993.

Looking at the coming three decades, given that coal is being phased out and nuclear technology is facing significant reinvestment needs, Newsec’s prediction for the Nordics and Baltics is that renewable sources will continue growing in share and importance. While the growth capacity for hydro is limited due to various restrictions, wind and solar are estimated to almost triple in volume.

: IEA (Electricity production by source from 

series we publish charts which we find eye-opening, and provide context and commentary.

Where our electricity comes from | Newsec Charts

In this edition of the Newsec Property Outlook, Newsec has analyzed ESG trends on the real estate market in the Nordics and Baltics. In the report, Newsec has identified a number of ESG trends on the real estate market that have not been highlighted earlier.

Newsec finds that ESG has risen to the top of the agenda for many real estate firms in the Nordics and Baltics. However, despite interest being high and investments intensifying, several areas within the field of ESG are yet to be fully explored, while others are in the process of maturing. The coming years are bound to be filled with innovation and broadening of initiatives within the subject, where synergies between digitalization and ESG will be realized.

Newsec Property Outlook - Autumn 2022

: Head of Advisory Sweden, Newsec; Multiple Chairman of the Board positions within Newsec Group


: Board member, Fastigo; Board member, ULI Charitable Trust


: MSc in Business Administration, IHM Business School; Diploma in Management, Henley Business School


Managing Director Advisory and Investment Management, and Deputy CEO 

Reducing a sizeable climate footprint, curbing soaring electricity costs, dealing with potential power shortage, and managing energy efficiency and reporting requirements to obtain various certifications. These are some of the challenges facing real estate today.

But with tailor-made plans, property owners can reduce energy use and cost while reducing their climate impact. The same plans can also serve to make them more profitable and attractive to investors, and obtain green financing.

“We recognise that sustainability done right can be a profitable venture. Our work for various clients contributes to making them more climate friendly as well as energy and cost efficient, which has a positive impact on property values,” says Christoffer Börjesson, responsible for Digital Accelerator at Newsec.

What actions for clients can reduce their emissions?

“In large renovation projects, which are sometimes a necessary evil, it is key to work with new processes and suppliers – and work in collaboration with our customers - to reduce CO

 emissions as much as we can. In our daily operations, it is about working with green energy contracts. Their CO

 footprints are smaller. Managing energy projects allows us to develop a range of solutions for efficiency and optimisation. We measure, analyse and decrease energy consumption and that reduces the environmental footprint. We also work on solutions for locally produced energy.”

We measure, analyse and decrease energy consumption and that reduces the environmental footprint

How solidly can you claim that increased energy efficiency will also reduce your customers’ energy costs?

“If customers invest in the digital infrastructure we often advise them to, which makes them able to measure and analyse, we know better what usage drives cost. Using that intel we can create programs to reduce energy and cut costs that risk ballooning. And of course, energy costs have come up quite significantly in the past two years, which gives efficient use an even bigger savings potential.”

Are there ways of getting around soaring energy prices?

“With our clients, we look at it holistically. Who pays for the energy? How can property owners create business around their own production and storage, and in some cases also become a producer of energy for their tenants? All to reduce costs and create incentives for green energy. A large part of this is working closely with users and tenants, to ensure that they are also involved and contribute to reducing energy costs.”

What do customers stand to gain from more digitalised management?

“If a property owner has a digital portfolio, i.e. digital technology and infrastructure that measures how their property performs in water usage, heating, climate, ventilation, utilisation rates and so on, it provides insights that make it possible to work with the costs or usage patterns that have the greatest impact their goals. Digital technology in a property, along with a management plan, enables more troubleshooting to be done centrally. You can be clear about your priorities, and target measures where they will have the greatest effect.

“To cite an example:sensors in waste management, so to optimise the garbage collection frequency. Measuring and data also help reduce energy consumption – keeping the heating or cooling or lights off when no one needs any of that. In a digitally connected property, you can control things remotely, which further reduces admin and transport to and from the property. And time saved, of course, is cost saved. Efficient use of space and resources, less need for transport and a reduced carbon footprint are some of the benefits and gains that can be achieved through digitalised management.”

Digitalisation can be a significant investment, at least initially. What are property owners thinking about that?

“If you look at it the other way around – working with increased reporting, insights into cost drivers, energy use, being part of the energy system and influencing the indoor climate – how can property owners do that without digital technology? Of course, digitalisation requires investments, but that doesn’t necessarily mean just high costs. More data-driven properties enable insights that aid prioritisation. Then you can address the things that have the greatest impact on costs and tenant experience, and quickly see returns on those investments.”

Digitalising to become more sustainable - a few key points

 – agree on a strategy and work from an overall company perspective.

 – install technical measurement infrastructure in the properties so that you measure correctly based on your plan and targets.

have clear planning and measurement instructions for the property, so that you know which measuring points and meters can be checked by the appropriate authorities, and also for various insights, reporting or follow-up.

 – Link technical measurement data with economic data, to create an overview of what underpins the largest costs and how these costs will develop over time.

Digital transformation: a stealthy path to sustainability in real estate?

Newsec Perspektiver blir utgitt to ganger i året. Få med deg siste nøkkeltall for næringseiendom.

Newsec Perspektiver 2-2023

Økende renter, og banker som krever høyere risikopåslag, gir kraftig økede finansieringskostnader. Hvordan påvirker dette markedssituasjonen? Få med deg markedsoppdatering for vår 2023. 

Markedsrapport fra Newsec - vår 2023

Markedet for næringseiendom har startet der det avsluttet i fjor — særdeles avventende — med kun 6,3 milliarder i registrert transaksjonsvolum. Skulle dette stå seg har vi et volum per første kvartal som historisk er kun 20% av snittet de foregående 8 år og 10% av snittet ift. fjoråret.

Markedsrapport fra Newsec - vinter 2023

Få oversikt over de siste endringene på yieldintervallene for norsk næringseiendom, etter geografisk lokasjon og segment per fjerde kvartal 2023.

Yieldtabell

Quality Board Q3-2023

Newsec acted as exclusive financial adviser to Mirova, an affiliate of Natixis Investment Management dedicated to sustainable investment via its funds Mirova Eurofideme 3 and Mirova Renewable Co-Investment 1, and to Eolus Wind (jointly the “Sellers”) on the sale of an operating wind farm portfolio in Sweden. The portfolio includes the 19.8 MW Långmarken wind farm in Kristinehamn, Southern Sweden (SE3) and the 27.6 MW Våsberget wind farm in Ljusdal, Northern Sweden (SE2).

The sale marks the Sellers’ exit from the portfolio following the pre-construction investment decision in 2015 and the first five years of operations. Both wind farms have been operational since 2017 and offer a versatile multi-option PPA offtake framework with Statkraft until 2032, allowing for short and medium-term strategic adaptability.

The portfolio is acquired by Glennmont Partners (“Glennmont”), Nuveen Infrastructure’s clean energy specialist and one of the world’s largest fund managers investing in clean energy. The investment is Glennmont’s first from their open-ended €700m brownfield European renewable infrastructure fund, which Glennmont launched with Dutch investor MN last year.

Commenting on the investment, Raphaël Lance, Head of Energy Transition Funds at Mirova said:

“We are proud to have brought in operation this Swedish portfolio with the help of initial developers and construction companies Eolus and RES Renewables Norden and with the support of our co-investor EIB. After almost six years of operations, in line with our third fund mandate, we are delighted to hand it over to the experienced teams at Nuveen.”

Commenting on the cooperation with Newsec Infra, Raphaël Lance continued:

“As in 2015, we are very satisfied by Newsec Infra’s support on this transaction. Through its deep knowledge of the Nordics environment and its considerable experience, Newsec Infra ensured a smooth and reliable sale process, which brought significant value for both the seller and the buyer.”

Omid Ashrafi, Managing Partner at Newsec commented:

“We are very thankful for the vote of confidence, being able to support this transaction. We worked with Mirova at the time of their investment decision in Våsberget in 2015 and now have the pleasure of also following this project, as part of the portfolio, all the way to exit in operating phase. Due to the rapid build-out of onshore wind in Sweden, we now have a considerable asset base forming an increasingly active secondary market. “Project Blizzard” is our third Nordic operating wind farm transaction signed in 2022. I believe that we will continue to see new inflow of capital for construction of renewable energy assets as well as into transactions with operating assets”.

Newsec advises on 47 MW operating wind portfolio in Sweden

Although the technical system is still part of the Telephone House at Borups Allé, the technique does not take up nearly as much space as it used to. This has contributed to space available for other purposes.
An optimization of the property has been implemented, where large areas for technical purposes were converted into primarily office space for the benefit of other companies. Over time, the property has evolved from a domicile to a multi-user house with different tenants, as our customer no longer has the same space needs.
NEWSEC has also rented 1,500 m² on the ground floor to the REPEAT fitness center. The other vacant areas are converted primarily into offices, with a central and visible location, close to 2 metro stations and to a reasonable rent and total economy. Renting for public use was not surprising.

We have now completed 3 rentals in total, of which 2 to the Municipality of Copenhagen totaling 16,000 m².

Another lease on behalf of TDC to Copenhagen municipality

Newsec acted as exclusive financial adviser to international solar developer ib vogt on its sale of a 206 MWp solar PV project to Finnish energy company Helen. The solar farm is located in Kalanti, Uusikaupunki, in South-West Finland and is ready to be built. As part of the offered turn-key solution, ib vogt will provide full EPC, O&M and Asset Management services and start construction in the second quarter 2023.

With the location in Finland having similar solar radiation levels to northern Germany, the solar power plant is expected to produce more than 200 GWh of clean energy per year, once it reaches commercial operation starting in late 2024. The solar project marks a milestone for ib vogt as the first plant to be built in a Nordic country and is exemplary for the continuous growth and internationalization of the company. The PV farm will consist of more than 380,000 high-capacity bifacial solar modules built on a fixed-tilt substructure for optimal performance. The panels will produce clean solar electricity equivalent to the average annual consumption of approximately 28,800 households, while saving up to 17,600 tons of CO2 per year.

Commenting on the sale, Hamish Duncan, Head of Project Sales at ib vogt said:

“We are very pleased to have completed the Kalanti transaction with Helen, and look forward to our continued partnership as the project now moves into construction and operations. The project marks a significant milestone for both ib vogt and the renewable energy market in Finland, and we are excited to further build upon this success in the years to come. We thank the Newsec Infra team for their dedication to driving the process forward and solution-orientated approach to the transaction – their depth of expertise in Nordic renewable energy M&A is evident, and we are very pleased to have cooperated with them.”

“We are delighted to work with ib vogt on this sales process and to conclude the transaction with Helen. While we have in recent years been part of a number of large-scale onshore wind deals, this is a landmark solar PV transaction for the Nordic market. The combination of ib vogt’s international expertise and track record within PV and Helen’s position as a leading power producer in Finland, expanding its production mix with solar makes this an interesting partnership. This sale marks Newsec Infra’s third large solar transaction in the Nordics this year.”

Digital transformation: a stealthy path to sustainability in real estate?

Newsec Perspektiver 2-2023

Where our electricity comes from | Newsec Charts

“ESG is not only the moment of truth, but an opportunity of a lifetime for the real estate market.”

Market report

Markedsrapport fra Newsec - vår 2023

Markedsrapport fra Newsec - vinter 2023

Yieldtabell

Quality Board Q3-2023

Populære innlegg

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Markedsrapport fra Newsec - vår 2023

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Newsec advises on 47 MW operating wind portfolio in Sweden

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Another lease on behalf of TDC to Copenhagen municipality

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Newsec advises on sale of 206 MWp solar PV project in Finland