KGAL fund snaps up 50-MW solar project in the Czech Republic

Independent investment and asset manager KGAL GmbH & Co KG today announced the acquisition of a 50-MW solar project in the Czech Republic through its KGAL ESPF 5 fund.

The purchase marks the fund’s entry into the country, which is developing into a “highly attractive market” for investors, KGAL said without disclosing financial details about the deal. The vendor Czech power grid operator Sev.en Inntech a.s.

The PVPP Saxonie plant will be installed in a former mining area near the city of Most in the North Bohemia region, with its construction slated to begin “shortly.” The plant will start feeding electricity to the grid run by Sev.en Inntech in the third quarter of next year. Its output will be mostly sold through long-term power purchase agreements (PPAs).

Micronix has been hired to serve as the project’s engineering, procurement and construction (EPC) contractor. In addition to performing this task, the company will buy a minority stake in the project.

“With the climate-neutral electricity from the solar park near Most, our KGAL ESPF 5 fund will achieve a particularly high impact,” said Andre Zcker, co-CEO of KGAL.

Pan-European renewable energy fund KGAL ESPF 5 invests in solar and wind assets and is expected to close for commitments in October.

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