KGAL fund, IMCS set up 1.1-GW Italian battery storage JV

Independent investment and asset manager KGAL GmbH & Co KG said today that its KGAL ESPF 5 fund has teamed up with Italy’s IMCS to jointly develop battery energy storage systems (BESS) projects in Italy, targeting up to 1.1 GW of total capacity.

Pan-European renewable energy fund KGAL ESPF 5 and the Italian renewable energy player will execute the scheme through a joint venture, KGAL said on Thursday.

The duo will seek to develop four BESS projects and then sell them when they reach the ready-for-construction phase. During the development stage, the partners will bet on IMCS’ experience in the development and execution of large-scale solar projects in the Italian market, to be complemented by KGAL’s know-how derived from several photovoltaic (PV) initiatives with Italian partners.

“This strengthens the basis on which we can continue to offer our ESPF 5 investors a double-digit return in the future,” said Florian Martin, Co-CEO of KGAL, adding that the fund is open for commitments until October.

According to the press statement, the return from the battery JV is expected to significantly exceed the target return of KGAL ESPF 5.

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