KGAL connects superlative Italian solar park to the grid

The renewable energy fund KGAL ESPF 4 has commissioned the “Tuscania” solar park in the Lazio region as planned. With a total capacity of 148 megawatts (MW), “Tuscania” is the largest privately financed solar park in Italy. The project is a perfect example of KGAL’s expertise in successfully advancing renewable energy projects from development, through construction and grid connection, to electricity marketing.

The “Tuscania” solar park north of Rome will generate around 240 gigawatt hours of electricity per year and thus avoid around 100,000 tonnes of CO2 emissions annually. The fund investors will receive attractive, predictable cash flows via a fixed power purchase agreement (PPA) with the Italian utility Edison for a period of 10 years from commissioning. The financing partners on the debt side are Natixis and ING.

In total, more than 272,000 solar modules from the manufacturer JA Solar, each with an output of 545–550 watts, were installed over an area equivalent to more than 250 football pitches.
Before this significant milestone was reached, project managers Katrin Werner and Patrick Villmann led the KGAL team to overcome several obstacles. “A project of this size always presents major challenges. The biggest of these is the precise coordination between financing and PPA, while at the same time, the construction and connection must proceed according to plan,” explains Patrick Villmann, Senior Transaction Manager at KGAL. Katrin Werner, Head of Project Implementation, adds: “A well-coordinated project team and close cooperation with all parties involved are crucial. We are all the more pleased that we have successfully completed the construction and connection phase, and that this impressive solar park can now make a contribution to sustainable energy supply in Italy.”

The “Tuscania” solar park is a prime example of KGAL ESPF 4’s core-plus strategy, with early involvement during the development phase enabling greater value creation for institutional investors.
KGAL ESPF 4 was launched in 2017 and has invested €1.3 billion in wind power, solar PV and hydropower across Europe. The fund is aiming for a double-digit return (IRR) with continuous distributions.

KGAL was advised on the legal aspects of the project by the Green Horse law firm, and on the technical side by A&D Ingegneria and Vector Renewables.

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