KGAL Investment Management has signed a power purchase agreement (PPA) with the Italian utility Edison for its 150MW Tuscania solar park in Lazio.
The site is held by the KGAL ESPF 4 fund and is one of the largest solar parks in Italy.
Electricity production is scheduled to start in the second half of 2024.
“Italy is one of the most important markets in our European renewable energy portfolio,” said head of project implementation sustainable infrastructure at KGAL Katrin Werner.
“The country scores highly due to its strong solar radiation, wind conditions, and the political will to drive the expansion of renewable energies.”
She said that much of the electricity produced by Tuscania will go to Edison at a fixed price over a 10-year period.
“For KGAL ESPF 4 investors, the PPA represents an attractive, long-term source of income.
“In addition, we are pleased to support Edison, as one of Italy’s leading electricity suppliers, in its ambitious decarbonisation plans.”
KGAL has been active in the Italian renewable energy market since 2010 with a portfolio that includes more than 30 solar parks and hydropower plants.
Further solar parks and wind farms, with a total capacity of more than 500MW, are in the planning phase or under construction.