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

: Deputy CEO Newsec, 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


The influence of sustainability extends to buyer preferences and investment strategies. A growing proportion of investors prioritize sustainable and environmentally certified properties, viewing them as more desirable and resilient assets. Conversely, properties with unfavourable energy ratings may face reduced demand and unfavourable loan terms, affecting their market value accordingly. 

Understanding the preferences and priorities of potential buyers and the financing market is key to navigating today's complex market scenery. Whether dealing with local investors, international stakeholders, or institutional funds, aligning with their sustainability objectives is crucial. In the context of green properties, which demonstrate resilience and desirability even amidst market uncertainties, aligning with investor preferences becomes vital. 

The driving force behind decision-making is also influenced by what the financing market, forexample, banks, considers important. This response varies over time: energy classification, governed by taxonomy, and a shift towards considering actual CO2 emissions will become increasingly significant. 

In addition, measuring the impact of social factors will play a more substantial role going forward. This trend is driven by banks and major investors seeking measurability across all sustainability aspects. In summary, sustainability is not just a moral imperative but a fundamental driver of property value. By integrating sustainability considerations into our analyses and client engagements, we are enhancing transparency and accountability and contributing to a more resilient and future-proof real estate sector. 

At Newsec, our commitment to sustainability is deeply intertwined with our property analysis and valuation approach. We have invested significant resources into educating ourselves and cultivating specialized expertise in this domain for years. Our ongoing dedication to monitoring various sustainability indicators enables us to identify how ESG influences property pricing. 

“Our valuation practices have become more sophisticated, and our analysis has improved not only because of the data but also because of how we have collected and structured the data. Currently, market evidence seems to indicate that Energy Class A properties and those with a clear path to Class A are of particular interest to investors. Similarly, the highest levels of LEED and BREEAM certification increase liquidity”, says 

"Our management services include the creation of comprehensive ESG reports, tailored to support our clients' ongoing ESG management efforts. These reports track critical metrics such as energy and water consumption, CO2 emissions, environmental certifications, energy certificates, and the use of renewable energy. Beyond reporting, we collaborate closely with our clients to develop ESG programs. When agreed upon, we also manage these programs to ensure the client achieves their sustainability goals", says

, Head of Sustainability & Energy Management services

Our clients benefit from comprehensive reporting on sustainability parameters, providing them with valuable insights into property valuation and management. 

It is evident that sustainability considerations play an essential role in terms of income, expenses, and yields. For instance, reduced energy costs can enhance the attractiveness of a property, positively impacting its rental potential and net operating income. 

Newsec's sustainability & Technical Management Services

Pauli Autio
Head of Sustainability & Energy Management services
+358 50 440 0802


Anna Aaltonen
Director, Sustainability and Quality
+358 40 179 398


Heikki Kangas
Head of Valuation
+358 50 320 9136


Impact of sustainability performance on property values 

In this edition of the Newsec Property Outlook, Newsec presents an analysis of Artificial Intelligence (AI) in the forecasting of real estate trends. Utilizing ChatGPT-4, a sophisticated AI model, Newsec assesses AI's capability to forecast transaction volumes and interest rates in the Nordics and the Baltics. Furthermore, Newsec explores the somewhat untapped potential of light industrial properties, following ChatGPT's advice to invest in logistics properties based solely on the segment's rapid expansion over recent years.

Newsec Property Outlook - Spring 2024

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.”

Impact of sustainability performance on property values

Newsec Property Outlook - Spring 2024

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.”

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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