German manager KGAL’s Article 9 fund has acquired a 50-megawatt solar project in Most, Czech Republic.
KGAL entered the Czech market with the purchase of PVPP Saxonie this week. The seller of the project is Sev.en Inntech, with EPC service provider Micronix responsible for construction of the solar park.
This is the eleventh transaction for KGAL’s impact fund ESPF 5, which was launched in 2021 as a pan-European renewable energy fund, having so far secured €350m of capital. The fund primarily invests in wind power and photovoltaics in compliance with Article 9 regulations, according to the manager.
KGAL chose to enter the Czech market due to the country’s capacity of solar power, low volatility electricity prices and electricity mix, which currently consists of more than 40% coal-fired generation, it explained.
“With the climate-neutral electricity from the solar park near Most, our KGAL ESPF 5 fund will achieve a particularly high impact,” explained André Zücker, co-CEO of KGAL.
According to KGAL, the construction phase of PVPP Saxonie will begin shortly, with grid connection planned for the third quarter 2025.
So far, the ESPF 5 fund has allocated over 80% of its committed capital, with 43% deployed, KGAL said.
This allocation follows the ESPF 5 fund entering into a joint venture with Italian renewable energy specialist IMCS to develop battery energy storage systems in Italy in August last year.
The final close of the Article 9 fund will take place in October of this year.
