German investment manager KGAL has sold the 130-megawatt Bäckhammar wind farm in Sweden to Norwegian renewables operator Aneo, marking a profitable exit from its KGAL ESPF 4 fund nearly six years after acquisition.
The Bäckhammar project, comprising 31 wind turbines, was part of KGAL’s early-stage renewable energy investments and has been operational since late 2020. The site benefits from favorable wind conditions at over 130 metres in altitude, enabling strong generation output. Most of the electricity generated has been sold under a 10-year power purchase agreement (PPA) with a U.S.-based technology company.
KGAL guided the wind farm from development through to commercial operation, including managing construction, securing grid connection, and structuring a viable financing and PPA framework. The sale follows the firm’s long-standing “Buy, Build, Sell” strategy, which has allowed it to achieve a return “clearly above the hurdle rate,” according to KGAL.
“This Swedish wind farm was KGAL ESPF 4’s first major commitment and was made possible by co-investment from a fund investor,” said Andreas Ochsenkühn, Head of Portfolio Management Sustainable Infrastructure at KGAL. “The successful structuring of a viable contractual framework, the implementation of a PPA tender process and the securing of long-term debt financing on competitive terms laid the foundation for the project’s success.”
KGAL added that the sale not only delivers strong returns but also contributes to decarbonization by enabling other operators to take over renewable energy assets. The company said a new fund in its ESPF series will be launched soon, expanding beyond power generation into battery storage and grid infrastructure.
