Following years of successful cooperation, KGAL is establishing a joint venture with Spain’s Premier Group for its KGAL ESPF 5 impact fund. The Spanish partner is contributing its own domestic solar PV project pipeline to the joint venture for further development. KGAL provides financial, operational and strategic support.
Spain is experiencing a solar boom. This is due, in part, to ideal conditions such as the highest irradiation levels in Europe and large areas of available land. In addition, solar energy costs have declined in recent years. This advantageous market environment has led to intense competition for grid connection capacities and the introduction of grid capacity auctions. KGAL and Premier are now joining forces to gain an advantage in tendering for grid capacities for solar parks. For the future, wind projects are also planned as part of the joint venture.
“With this joint venture, we are involved in the value chain from the very beginning and can take advantage of all the opportunities offered by the attractive Spanish market. For KGAL ESPF 5, this means high return potential,” explains Michael Ebner, Managing Director of Sustainable Infrastructure at KGAL Investment Management. “Premier is our partner of choice, as we have been working together successfully and with confidence since 2018”. KGAL has already cooperated with Premier Group on three large-scale PV projects in Spain with a total capacity of 287 megawatts. The two companies also launched a joint venture for the Italian market in Spring 2022.