Investment and asset manager KGAL and general contractor Pfalzsolar have entered into a joint venture for the development and construction of two solar parks, totalling 176MW, in Greece.
The Volos project (81MW) is located in central Greece and the Evros project (95MW) is located in the north.
Grid connection for the Volos project is planned for the end of 2023 and the Evros project is on course for autumn 2024.
Both plants are part of the Article 9 impact fund KGAL ESPF 5.
Greece has recently adopted a number of measures in line with its ambitious solar energy expansion targets of 1.3GW a year by 2030.
Of these, 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”, said 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.”
Pfalzsolar is responsible for the planning, construction and operation of the plants together with local onsite partners.
Including the Greek market, KGAL is now represented in 12 European countries with its “sustainable infrastructure” asset class.
The Greek solar plants are the sixth investment for the Article 9 impact fund since its launch at the end of 2021.