In 2019, Axel Johnson took its first steps into the solar market, through investments in Eneo and Otovo. These were followed up with two addition investments during 2020. The aim is, through continued investments in leading Nordic companies with European ambitions, to build a business that in the long term can become a significant part of Axel Johnson.

Since 2010 solar has grown faster than any other type of energy. The frameworks set by the global climate targets have been important. But far more important is the fundamental change in economic conditions for solar, which today is a competitive energy alternative for both companies and households.

Stina Andersson, COO of Axel Johnson, is in charge of the solar investment work:

“We really believe in the field and that our long-term view makes us an exceptionally good owner for solar. There is a very clear structural argument for declining solar energy costs, and a need to meet growing energy consumption with fossil-free energy sources will create growth over time. Solar is already growing faster than any other type of energy, and in the long term we believe that the growth curve will be even steeper. No one knows exactly what that growth will look like. Of course, there is uncertainty, for example about future regulation and technology development, but our long-term view makes us exceptionally good at dealing with this kind of uncertainty. We look at solar energy as a potentially significant part of a future Axel Johnson and are much more interested in the ten- or 20-year perspective than just looking at one or two years”.

The goal is to contribute as an active owner to the companies’ growth and European expansion, and to consider further investments in the segment. In addition to the strong long-term growth prospects, investments in solar energy companies also are a good value fit for Axel Johnson:

“In order to meet the climate goals, a number of changes must be made, but if one change is to be emphasized, the transition to fossil-free energy production is the most important. For a company such as Axel Johnson, which has long emphasized the company’s responsibility to have a positive impact on society, it is of course fantastic fun to join and build companies that contribute to that change”, says Stina Andersson.