Above Midgard, but below Asgard, lies Alfheim, a world inhabited by beautiful, powerful, and unpredictable beings – the Alfr. The sun in this world is called Alfrodull, which means "radiance of the elves."
The Alfr learned to capture the radiance of their sun in transparent jars. These vessels containing the Light of Alfheim had extraordinary properties: they inspired the Aesir like nothing else in all nine Norse worlds. Hearing about this wondrous source of power, the gods tried to obtain the secret of creating the Light. But the Alfr carefully guarded their knowledge, for one can never know what the gods have in mind.
The Aesir promised immense riches in exchange for the secret of creating the Light. They devised the most cunning plans of deception and even threatened to go to war against Alfheim. But the Alfr merely shrugged at all these attempts and simply disappeared right in front of the gods, whose insatiability could extinguish the very sun of Alfheim itself. And so, when war seemed inevitable, a solution was found in the world of humans.
The gods proposed an unusual form of entertainment to the Alfr: a competition between Jarls on the fields of Alfheim with the Light as the prize. The Alfr couldn't resist this offer, for they had always had a weakness for humans and loved to observe them. Thus, they invited the most outstanding Jarls to their world to enjoy the Jarls' display of battle prowess.
You're probably wondering what the gods got out of all this. The cunning Aesir knew that after the battle, the Vikings would thank their patron gods and lay their battle trophies and the Light they'd earned at the statues of these patron gods. Therefore, by the will of the Aesir, an Altar of Light was built in every town in Midgard.
Thus, the Aesir received inspiration, the Alfr – regular entertainment, and the Jarls – a way to receive the gods' blessings. And so the Battle for the Light came to be.