KGAL Investment Management has signed power purchase agreements (PPAs) with Lafarge Cement Polska for two wind farms in Poland.
The Krasin and Rywald wind farms, which belong to the KGAL ESPF 4 renewable energy fund, will supply Lafarge with around 230 gigawatt hours of green electricity a year.
The 35MW Krasin wind farm, acquired by KGAL ESPF 4 in May 2020 as a development project, has been generating electricity since the end of last year.
The 27MW Rywald wind farm entered the portfolio in spring 2021 during the project development phase and is now undergoing testing ahead of feeding into the grid on a regular basis from October 2023.
The tender for the two wind farm PPAs attracted great interest from commercial offtakers, with more than 10 applicants.
“For companies, PPAs mean planning security for renewable energy supply in a highly volatile market. KGAL, in turn, can use PPAs to fix attractive electricity prices for a long period of time and thus generate reliable returns,” said Michael Ebner, Managing Director of KGAL Investment Management.
“We chose Lafarge as a partner because the company offered an above-average contract term of 15 years and, moreover, purchases the entire electricity production of both wind farms.
“In addition, we expressly support Lafarge’s efforts to achieve carbon-neutral electricity supply as a producer in the energy-intensive cement sector.”
Lafarge Cement Polska, which is part of Holcim Group, can cover 50% of its electricity needs with renewables following the signing of the recent PPAs with KGAL.
KGAL was advised by PwC and the law firm DWF Poland Jamka during the contract negotiations.