KGAL’s fifth European renewable energy fund has made its Czech debut with the purchase of a 50MW solar project from Sev.en Inntech.
The ESPF 5 fund has invested an unspecified amount to acquire the PVPP Saxonie project near the northern Bohemian city of Most.
KGAL said it is partnering with Sev.en Inntech and Micronix to develop the solar project. Micronix will build and invest in the solar park, serving as the engineering, procurement and construction contractor, and acquiring a minority stake.
André Zücker, co-CEO of KGAL, said: “With the climate-neutral electricity from the solar park near Most, our KGAL ESPF 5 fund will achieve a particularly high impact. The construction phase will begin shortly and grid connection is planned for the third quarter of 2025.
“The electricity will mainly be marketed through a long term power purchase agreement.”
KGAL said the fifth renewable energy fund, which is on track to close its fundraising in October 2024, has now completed 11 transactions in six European countries: Germany, Greece, Italy, Poland, Spain and the Czech Republic.
Florian Martin, co-CEO of KGAL, said over 80% of ESPF 5’s €350m equity has been allocated, with 43% already deployed.
Martin added: “Through its [ESPF 5] investments, our impact fund covers all life cycle phases from project development to operations. Investments are generally made at an early stage in order to participate in a large part of the value creation.
“We significantly exceeded our original plans and are now aiming for a clear double-digit return for ESPF 5.”
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