KGAL Acquires 60-MW Solar Plant in Spain for SAGST

• KGAL acquires 60.5-MWp solar plant in Spain for SAGST, marking its first international solar venture, promising stable returns and local job creation.

KGAL Investment Management has acquired a 60.5-MWp solar power plant in Andalusia, Spain, for the Software AG Foundation (SAGST). This marks SAGST's first international solar addition to its renewables platform, SAGST Renewables GmbH, established in 2024. The Gerena solar park, developed by BayWa r.e., began operations in June and has secured 70% of its output under a 10-year power-purchase agreement with a European industrial off-taker, providing stable income and protection against price volatility.

SAGST has invested €150 million in Gerena and three German wind farms, with plans to invest an additional €100 million in clean-energy assets. KGAL, with a 20-year presence in Iberia, manages over 1 GW of wind and solar capacity, citing Spain's favorable conditions for long-term value. The project aims to boost local infrastructure and create jobs in Guillena, aligning with SAGST's goal of combining financial returns with social and environmental benefits.

What are the strategic benefits of SAGST's first international solar investment in Spain?

• Diversification of Energy Portfolio: Expanding into international markets like Spain allows SAGST to diversify its renewable energy portfolio, reducing reliance on domestic projects and spreading risk across different geographical locations.
• Access to Favorable Market Conditions: Spain offers favorable conditions for solar energy investments, including high solar irradiance and supportive government policies, which can enhance the profitability and efficiency of the solar power plant.
• Long-term Revenue Stability: The 10-year power-purchase agreement (PPA) with a European industrial off-taker ensures a stable and predictable revenue stream, providing financial security and reducing exposure to market price fluctuations.
• Strengthening International Presence: This investment marks SAGST's entry into the international renewable energy market, potentially opening doors for future projects and collaborations in other countries.
• Contribution to Local Economy: The project supports local economic development by creating jobs and boosting infrastructure in the Guillena region, aligning with SAGST's commitment to generating social and environmental benefits alongside financial returns.
• Leveraging Expertise: Partnering with KGAL, which has extensive experience in the Iberian renewable energy market, allows SAGST to leverage local expertise and knowledge, enhancing the project's success and operational efficiency.
• Alignment with Sustainability Goals: Investing in renewable energy projects abroad supports SAGST's broader sustainability objectives, contributing to global efforts to reduce carbon emissions and combat climate change.