Shell Energy Europe has inked a deal with German investment and asset manager KGAL to purchase power from a 60MW solar park near Magdeburg.
Under the 10-year power purchase agreement (PPA), Shell will purchase all the electricity generated by the Calvörde Ost solar plant.
KGAL acquired Calvörde Ost at an early stage for the KGAL ESPF 5 renewable energy fund in 2023 and brought it through development and construction to grid connection.
Calvörde Ost has been feeding green electricity into the grid since autumn 2024.
“With the PPA, we have now reached another important milestone,” said KGAL’s head of performance management Katrin Werner.
“We are securing attractive long-term cash flows for our investors.”
The solar park is expected to generate almost 60,000 megawatt hours of green electricity per year. This will supply around 29,000 households and avoid 39,000 tonnes of CO2 emissions.
It is part of the the Calvörde Cluster (pictured), which is owned by the KGAL ESPF 5 fund and also includes the 40MW Calvörde West and 20MW Grauingen solar parks, which are due to be connected to the grid this autumn.
KGAL was advised by LPA on the transaction with Shell.