KGAL is to sell five solar power plants in Spain that it acquired before the country decided to retroactively reduce feed-in tariffs.

The German fund manager has sold two photovoltaic farms to a Spanish investor and plans to sell the remaining three to it before the end of the year.

The solar farms, which combined produce 36 megawatts of energy, are in the autonomous province of Castilla la Mancha and were acquired by KGAL between 2007 and 2011 for several mutual funds.

KGAL said the decision by the Spanish government at the end of 2011 to retroactively reduce feed-in tariffs meant the “originally planned revenue could not be achieved”.

But Michael Ebner, managing director of infrastructure at KGAL Investment Management, said active asset management and a well time sale “enabled us to secure an attractive return for investors” despite the cuts.

KGAL said it intends to continue to increase its investments in European renewables, focusing on solar power in Italy and Spain, and wind and hydro power in Scandinavia.