KGAL has commissioned a 148MW solar farm in Italy’s Lazio region.
The Tuscania solar park (picture of team at the site before grid connection) is one of Italy’s largest privately financed assets of its kind.
The solar farm has a 10-year power purchase agreement (PPA) with the utility Edison.
The financing partners on the debt side are Natixis and ING.
“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,” said Patrick Villmann, Senior Transaction Manager at KGAL.
Katrin Werner, Head of Project Implementation, added: “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 €1.3bn in wind power, solar and hydropower across Europe.
The fund is aiming for a double-digit return (IRR) with continuous distributions.