KGAL is establishing a joint venture with Spain’s Premier Group for its KGAL ESPF 5 impact fund, following several years of cooperation between the companies.
The Spanish partner is contributing its own domestic solar PV project pipeline to the joint venture for further development and KGAL is to provide financial, operational and strategic support.
Spain is experiencing a solar boom. This is due, in part, to ideal conditions such as the highest irradiation levels in Europe and large areas of available land. In addition, solar energy costs have declined in recent years. This advantageous market environment has led to intense competition for grid connection capacities and the introduction of grid capacity auctions.
KGAL and Premier are now joining forces to gain an advantage in tendering for grid capacities for solar parks. For the future, wind projects are also planned as part of the joint venture.
“With this joint venture, we are involved in the value chain from the very beginning and can take advantage of all the opportunities offered by the attractive Spanish market.
“For KGAL ESPF 5, this means high return potential,” said Michael Ebner (pictured), Managing Director of Sustainable Infrastructure at KGAL Investment Management.
“Premier is our partner of choice, as we have been working together successfully and with confidence since 2018”.
KGAL has already cooperated with Premier Group on three large-scale PV projects in Spain with a total capacity of 287MW.
Premier Group was founded in 2006 and has since developed a total renewable energy capacity of more than 3.4GW from Brazil to Spain, Italy and Japan.