Sweden is set to become the world’s first solar-powered power company with a solar power-sharing agreement signed between the two companies.

    The agreement, signed on Wednesday between Swedish and Global Planet, will see the two firms build a platform to provide electricity to the Swedes.

    The Solar Power and Solar Power for Sweden, or SSPST, is a joint venture between Global Planet and SolarPower, which is currently the only solar power company in Sweden.

    The SolarPower-SSPST joint venture will provide power to the Swedish market with the aim of generating around 5 percent of Sweden’s electricity.

    SolarPower has a 25 percent share of the market and SolarPlanet has a 20 percent share.

    According to the company, the partnership will allow SolarPower to expand its portfolio of power generation and distribution solutions across Sweden. 

    SolarPlanet, founded in 2002, has built a reputation for innovative solar power technology and a high level of sustainability in the Swedish energy sector.

    A global leader in solar energy and solar storage, SolarPower’s first venture, SolarPowered.com, launched in 2009 and has now generated over one million megawatts of electricity.

    SolarPower said it expects to be operating the new platform for five years, with the first customers to be signed up by the end of 2021.

    SolarPlanet will be able to generate around 2,000 megawatts (MW) of power with a potential to provide 1,000 MW of power per year.

    At the moment, Sweden’s solar industry generates around 20,000MW of electricity from its own solar power plants.

    The project, however, is not a direct transfer of power to Sweden from Global Planet.

    Instead, the Swedish government will buy SolarPowers energy from the Swedish power company.

    SolarPowers founder Björn Hörmann said the deal will help SolarPower become an energy producer in the solar sector, adding that the agreement will allow the company to increase its production capacity to help SolarPower diversify its business.

    “The Swedish Government has always made a strong commitment to our energy sector and the cooperation with SolarPower is part of this commitment,” he said.

    “SolarPower’s commitment to the energy sector is clear and our commitment to SolarPOWER is even clearer, as it is in the interest of SolarPower and its partners to ensure that SolarPower becomes a leading energy producer.”

    In the long run, the agreement with SolarPOW can also support the future growth of SolarPpower and the SolarPpowered Solar Power Company in Sweden,” he added.

    In addition to Sweden, the company has an agreement with Denmark for the use of the power generated by the two Danish energy projects in the North Sea, the Danish Energy Authority said in a statement.

    Sweden is expected to produce around 2.5 gigawatts (GW) of solar energy this year, according to SolarPlanet.

    SSPTT will use Swedish solar technology and infrastructure to build on the successful model of the Norwegian company SolarWorld and partner with Norwegian companies to build the infrastructure for solar power production.

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