Investment and asset manager KGAL, and project developer and general contractor PFALZSOLAR, are entering into a joint venture for the development and construction of two solar parks in Greece. The Volos project (81 MWp) is located in central Greece, and the Evros project (95 MWp) is located in the north. Both plants are part of the Article 9 impact fund KGAL ESPF 5, allowing the fund to benefit from Greece’s solar energy boom.

Greece has recently adopted a number of measures in line with its ambitious solar energy expansion targets of 1.3 gigawatts per year, on average, by 2030. Notably, a law passed in June 2022 aims to reduce the average approval period for renewable energy plants from five years to 14 months. "Another plus is the state-subsidised feed-in tariffs for green electricity via tenders", explains Michael Ebner, Managing Director of KGAL Investment Management. "However, our joint projects could also secure PPAs – power purchase agreements – or sell electricity on the spot market. We are extremely well positioned with PFALZSOLAR as we can generate very attractive returns in every possible scenario." Grid connection for the Volos project is planned for the end of 2023, and the Evros project is on course for autumn 2024.

PFALZSOLAR is responsible for the planning, construction and operation of the plants together with local onsite partners. Ebner continues: "Just like KGAL, our partner has been active in the field of renewable energies since 2003. PFALZSOLAR has a strong track record." KGAL, in turn, brings its strengths in structuring and financing to the joint venture, in addition to its equity participation. "With its many years of experience, KGAL is an ideal partner for us to tap into the promising Greek market," says Lars Josten, Managing Director of PFALZSOLAR.

KGAL ESPF 5 exceeds expectations

Having entered the Greek market, KGAL is now represented in a total of twelve European countries with its Sustainable Infrastructure asset class, and secures two more assets with above-average potential for KGAL ESPF 5. This is the sixth investment for the Article 9 impact fund since its launch at the end of 2021. "KGAL ESPF 5 has exceeded our high expectations in terms of projects and return potential already in the launch phase," explains Florian Martin, Managing Director of KGAL Investment Management. "We are therefore optimistic about the next closing of our impact fund, which is continuing to fundraise as planned.”

For use of images, please quote KGAL GmbH & Co. KG or PFALZSOLAR/Mielek respectively.