KGAL has officially commissioned the 148 MW Tuscania solar park in Italy's Lazio region, marking one of the largest privately financed solar projects in the country. The solar farm is equipped with a 10-year power purchase agreement (PPA) with utility company Edison, ensuring a stable revenue stream for the project.
The financing for the project was provided by Natixis and ING, which supported the debt side of the financing structure.
Patrick Villmann, Senior Transaction Manager at KGAL, commented, “A project of this size always presents major challenges. The biggest of these is the precise coordination between financing and PPA, while at the same time, the construction and connection must proceed according to plan.”
The successful completion of the project is seen as a significant achievement for the team, with Katrin Werner, Head of Project Implementation at KGAL, adding, “A well-coordinated project team and close cooperation with all parties involved are crucial. We are all the more pleased that we have successfully completed the construction and connection phase, and that this impressive solar park can now make a contribution to sustainable energy supply in Italy.”
The Tuscania solar park is a key asset for KGAL's ESPF 4 fund, which focuses on core-plus investments. By becoming involved early in the development phase, the fund was able to create greater value for institutional investors. Launched in 2017, the KGAL ESPF 4 fund has invested €1.3 billion in wind, solar, and hydropower projects across Europe, with an objective to deliver a double-digit internal rate of return (IRR) along with continuous distributions.
This project highlights KGAL's ongoing commitment to renewable energy and its strategic focus on large-scale sustainable investments in the European energy market.
