KGAL forms solar-focused JV in Spain with local partner
Solar panels in Spain. Author: Jordi Domènech i Arnau. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.
German investment and asset manager KGAL GmbH & Co KG said on Thursday that it is setting up a joint venture (JV) in Spain for its impact fund KGAL ESPF 5 to pursue opportunities in the Spanish solar and wind energy markets.
KGAL’s JV partner is Spanish solar PV developer Premier Group, which will contribute into own solar pipeline to the joint vehicle for further development.
The partnership will initially focus taking part in the solar boom in Spain, where the market is witnessing a scramble for grid connection capacity and the introduction of grid capacity tenders.
“KGAL and Premier are now joining forces to gain an advantage in tendering for grid capacities for solar parks,” the German partner said.
“In Spain, high financial guarantees are a prerequisite for participating in grid capacity tenders. With KGAL’s financial strength, we expect to make the most of the opportunities in our home market,” added Cesar Abad, CEO of Premier Group.
The JV will consider adding wind projects later in the future.
Zaragoza-based Premier Group has developed over 3.4 GW of projects in Brazil, Spain, Italy and Japan since it was founded in 2006, according to KGAL. The German-Spanish duo previously cooperated on three large-scale solar PV projects totalling 287 MWp in Spain. In the spring of 2022, the firms launched a JV for the Italian market.
The Spanish JV is the fifth transaction for the impact fund KGAL ESPF 5 since the December 2021 launch. Further transactions in Southern and Central Europe are in the final stages, said Florian Martin, Managing Director and head of KGAL’s client business.
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