That if I'm not mistake is the factory wired in plug for install auxiliary lights. They dropped it from later models, but handy on the earlier ones.
Refer to page 14 in the instruction you can see the connector.
http://accessories.volvocars.com/en-...lt/XC90%202007
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Current V70III 2.4D (163) SE Sport 4C (2008)
V70 T5 (1996)
V70 P2 D5 EUIII (2002)
XC90 V8 4.4 (2007)
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