Highlights

• Proportionate power generation amounted to 439 GWh for the reporting period, and in addition, the Company had 20 GWh of compensated volumes relating to ancillary services and availability warranties, bringing the total proportionate power generation, including these compensated volumes, to 459 GWh.
• In July 2025, the Company completed the sale of a 76 MW solar project in Germany for a total consideration of MEUR 4.0, with MEUR 2.0 paid at closing and the remaining consideration contingent upon municipal and legislative approvals.
• Reached the ready-to-permit milestone for a second solar project in Germany of 93 MW, and advanced seven large-scale solar and battery projects in the UK towards final grid confirmation under the ongoing grid reform.
• Entered into financial hedges covering approximately 40 percent of the second-half 2025 expected proportionate power generation volumes in the SE3 and SE4 price areas at an average price of EUR 52 per MWh.
• The Company delivered in line with expenditure guidance for the reporting period, with the exception of operating expenses which were impacted by elevated balancing costs during the first half of 2025, resulting in an increase to the Company’s full-year operating expenses guidance from MEUR 17 to MEUR 19. 

Consolidated financials – 6 months

• Cash flows from operating activities amounted to MEUR -3.8.

Proportionate financials - 6 months

• Achieved electricity price amounted to EUR 36 per MWh, which resulted in a proportionate EBITDA of MEUR -3.9.
• Proportionate net debt of MEUR 77.3, with significant liquidity headroom available through the MEUR 170 revolving credit facility.

Comment from Daniel Fitzgerald, CEO of Orrön Energy
“During the second quarter, we continued to focus on optimising our operational assets aiming to mitigate the effects of market volatility and increased balancing costs, while advancing our project development pipeline in Germany and the UK.

The Nordic electricity market remained challenging during the first half of 2025, with continued low electricity pricing and high balancing costs impacting the Company’s financial results. The costs related to balancing the power system have been higher than normal in 2025, largely driven by structural market reforms and increasing power generation intermittency coupled with continued low demand and we cover the background to balancing and ancillary services in the operational section of this report. As a result, we need to raise our full-year guidance for operating costs from MEUR 17 to MEUR 19. However, we are also seeing increased revenues from ancillary services, which we expect will continue to grow and help offset this increase. The largest impact from higher balancing costs has been in Finland. To mitigate this at our MLK windfarm, we commissioned an automated solution in July designed to reduce our exposure to balancing risks and costs.

Early in the third quarter we entered into financial hedges for around 40 percent of our expected proportionate power generation volumes in the SE3 and SE4 price areas for the second-half of 2025 at an average price of EUR 52 per MWh, which gives more certainty against market volatility like we have seen in previous quarters. We also have several battery projects underway, which should improve our flexibility and further strengthen our resilience in the current market environment.

Our proportionate power generation in the reporting period amounted to 439 GWh, and in addition we received compensation for 20 GWh related to ancillary services and availability warranties. Notwithstanding this, our forecast production for 2025 is expected to be at the lower end of our outlook range, primarily due to weather conditions and curtailments during low-price periods.

I am really pleased to share that we closed the sale of a 76 MW solar project at the end of July, our first sale in Germany, which marks a key milestone for this business. The total consideration for the sale is MEUR 4.0, comprising of MEUR 2.0, which was paid at closing, and a remaining consideration of MEUR 2.0, which is contingent upon municipal and legislative approvals, which we hope to see concluded in 2026. The sale represents a good return on invested capital, and we will see the impact from that reflected in our third quarter results. This transaction marks the first monetisation from our greenfield platform and demonstrates our ability to unlock value early in the development cycle. I expect this to be the first in a series of project sales, as we continue to develop and mature our greenfield pipeline.

We also made progress across the wider greenfield portfolio, where we reached the ready-to-permit milestone for a 93 MW solar project in Germany, which is expected to enter a sales process shortly. In the UK, we are advancing seven large-scale solar and battery projects toward final grid confirmation under the ongoing reform, with feedback expected in the second half of this year.

Financially strong during challenging markets

We remain in a strong financial position, with more than MEUR 90 of liquidity headroom, and have the ability to manage the pace of our investments as markets evolve. However, market conditions and increased balancing costs negatively impacted our financial performance during the quarter. Proportionate revenues and other income for the quarter amounted to MEUR 6.0, and proportionate EBITDA for the quarter was MEUR -4.3. I am encouraged to see the positive results from the ancillary services implemented at MLK, which has contributed additional revenues during the reporting period and is a key part of our strategy to improve flexibility and optimise production and revenues on our assets.

Entering a new phase 

We are now three years into our journey as a renewable energy company, and with the completion of our first project sale in Germany, alongside several additional projects we plan to bring to market soon, we are entering a new phase which will further diversify and strengthen our revenue streams. Supported by a robust pipeline of greenfield projects, strong technical performance across our operational assets and a dedicated team, I am confident that we are well positioned to create sustainable, long-term value for our shareholders.

I would like to once again thank our shareholders for your continued support, and look forward to providing further updates during 2025.”

Company Profile: Orrön Energy

Orrön Energy is an independent, publicly listed renewable energy company (Nasdaq Stockholm: “ORRON”) within the Lundin Group of Companies. The Company transformed into a renewable energy Company in July 2022, and has since grown its annual power generation from 300 GWh to 1,000 GWh, and established a 40 GW pipeline of early-stage greenfield projects in the Nordics, the UK, Germany and France. The Company is active in all stages of renewable energy projects, ranging from project initiation, development, operations, maintenance and repowering.

The business strategy is focused on growth across two core areas; building a portfolio of cash-generating assets and developing a large-scale pipeline of projects. The operational portfolio consists of high-quality wind power assets in the Nordics, which the Company seeks to optimise and grow organically to support continuous growth of power generation and revenue streams. The greenfield portfolio is targeting initiation of development projects within proven and low-cost technologies such as onshore wind, solar and batteries in the Nordics, the UK, Germany and France. The Company has an opportunistic approach to realising value from the greenfield portfolio and will seek to monetise projects throughout the value chain, depending on market conditions at the time. For the largest projects, the strategy will be to divest prior to incurring significant development and construction costs.

History

Orrön Energy was born in 2022, but can trace its roots back to Lundin Energy and its predecessor company Lundin Petroleum, formed in the early 2000s. Lundin Energy’s oil and gas business was acquired by Aker BP in 2022, to create the leading exploration and production company for the future.

As part of the transaction with Aker BP, Orrön Energy was created with the renewables assets from Lundin Energy as a base and became the new renewables vehicle within the Lundin Group of Companies. Orrön Energy has retained key members of Lundin Energy’s Board and management team, with knowledge of the renewables asset base and a proven track record of building companies which have delivered significant value for shareholders over many years.

Operational assets

Orrön Energy owns and operates a portfolio of wind power assets in the Nordics, with an estimated annual power generation of between 900 and 1,000 GWh in 2024. The wind power assets are managed by an experienced team in Sweden with a longstanding background from the renewables industry. A range of projects are ongoing to optimise the power generation capacity and organically grow the portfolio, which includes extending the operational lifetime of assets, re-powering and consolidation of ownership shares. The Company is also working with optimising the grid utilisation by adding complementary technology and providing ancillary services.

A large portion of the power generation derives from assets that are newly constructed and equipped with modern technology to ensure low cost and efficient operations. This means that the cost for estimated maintenance is low, with high availability and efficiency during a long-term asset lifetime.

Sweden

The Swedish portfolio consists of ownership in 200 operational wind turbines in more than 50 sites, which have an estimated long-term proportionate annual power generation of around 800 GWh and a total net installed capacity of around 300 MW. A majority of the assets are situated in the SE3 and SE4 price areas. Availability warranties are in place for a majority of the Company’s assets, which guarantees the availability of the turbines and gives the Company protection against downtime and outages.

The largest producing asset in the Swedish portfolio is the Karskruv wind farm, which was completed and taken over for commercial operations at the end of November 2023. Karskruv has an estimated annual power generation of 290 GWh, which is generated from 20 Vestas turbines with a total installed capacity of 86 MW. The wind farm is situated in the SE4 price area.

Another large production hub for the Company is situated at Näsudden on Gotland, consisting of ownership in five wind farms, with a combined power generation of around 165 GWh in the SE3 price area. This is a pioneering region for wind power in Sweden and Gotland is also where the Company has its operational office.

Finland

The Company owns 50 percent of the Metsälamminkangas (MLK) wind farm and 100 percent of a 9 GWh wind farm located in Hanko in Finland. MLK has an estimated long-term gross annual power generation of around 400 GWh, which is generated from 24 GE turbines with a total installed capacity of 132 MW. The wind farm has an estimated operational life of around 30 years and has been in operation since the end of March 2022.

Development

The Company is maturing a 40 GW onshore greenfield portfolio consisting of onshore wind, solar and battery projects in the Nordics, the UK, Germany and France. This is led by experienced development teams, with a proven track-record of greenfield project origination and development in these markets. Final project realisation will be dependent on a number of factors, such as permitting, fulfilment of projects milestones and commercial viability.

The Company has an opportunistic approach to realising value from this portfolio and seek to monetise projects throughout the value chain, depending on market conditions at the time. For the largest projects, the strategy will be to divest prior to incurring significant development and construction costs.

In the UK, the Company has secured a portfolio of grid connections with a capacity of 24 GW for solar projects and 12 GW for co-located battery projects, with expected grid energisation dates between 2030 and 2040. The grid connections are located in favourable areas for development, based on extensive screening of key criteria such as irradiation, grid capacity, land availability and constraint mapping. The UK has a high permitting success rate for projects and, in addition, large-scale projects benefit from increased regulatory support as nationally significant infrastructure projects (NSIP). Having already secured grid connections, the Company has secured multiple land exclusivity agreements in 2024 and is in negotiations to secure land rights for other projects.

In Germany, the Company has initiated land acquisition work in targeted regions which have been chosen based on a range of key criteria, such as irradiation, grid capacity and land availability. The Company has successfully originated a pipeline of around 3 GW of solar and battery projects, and secured multiple exclusivity contracts for land.

In France, the Company has carried out early-stage land availability studies as well as high level grid surveys. The Company has also identified key areas based on irradiation, land availability and grid capacity and is working to secure land for its first projects.

Nordics

In the Nordics, the Company is progressing a range of stand-alone and co-located project opportunities, ranging from early-stage projects in the screening phase, through to projects with construction permits in place moving towards investment decisions. This allows the Company to organically grow its portfolio, optimise power generation and crystalise further value from its operational assets, which includes projects aimed at extending asset lifetimes, re-powering and consolidation of ownership shares.

In Sweden, the Company has established a portfolio of greenfield project opportunities ranging from early-stage to permitted projects, totalling over 500 MW across wind, solar and battery projects.

In Finland, the Company has acquired a greenfield portfolio, consisting of four wind energy and battery projects with an initial estimated installed capacity of up to 180 MW, with land secured for all wind turbine locations. The greenfield projects are at an early-stage, and the Company aims to reach the ready-to-build stage in 2027.

Construction

The Company is working on a range of stand-alone greenfield as well as co-located project opportunities, ranging from early-stage projects in the screening phase, through to projects with construction permits in place moving towards investment decision. Once an investment decision has been made and the development project has the required permits in place, it will progress towards the construction phase prior to entering the operational phase.

Leadership

Daniel Fitzgerald CEO
Grace Reksten Skaugen Chair of the Board
Espen Hennie Chief Financial Officer
Henrika Frykman General Counsel
Carl Sixtensson Technical Director
Robert Eriksson Director, Corporate Affairs and Investor Relations

Contacts

Orrön Energy AB 
Hovslagargatan 5
SE – 111 48 Stockholm
Sweden

Tel +46 8 440 54 50

KeyFacts Renewable Energy Directory: Orrön Energy