Shell Energy Europe has signed a 10-year power purchase agreement (PPA) with German investment and asset manager KGAL to purchase the entire output of the 60MW Calvörde Ost solar park near Magdeburg. The agreement secures Shell's access to green electricity generated by the facility, which has been feeding power into the grid since the autumn of 2024.
KGAL acquired the Calvörde Ost solar park in 2023 as part of its KGAL ESPF 5 renewable energy fund. The company managed the development and construction of the project, which has now reached full grid connection.
“With the PPA, we have now reached another important milestone,” said Katrin Werner, head of performance management at KGAL. “We are securing attractive long-term cash flows for our investors.”
The solar park is expected to generate almost 60,000 megawatt hours of green electricity annually, enough to supply approximately 29,000 households. It is also projected to prevent the emission of 39,000 tonnes of CO2 each year.
The Calvörde Ost project is part of the broader Calvörde Cluster, which is owned by the KGAL ESPF 5 fund. The cluster also includes the 40MW Calvörde West and 20MW Grauingen solar parks, both of which are expected to be connected to the grid this autumn.
KGAL was advised by LPA on the transaction with Shell. The deal underscores the growing trend of long-term agreements between energy providers and investors to support the expansion of renewable energy infrastructure.
