KGAL takes stake in Italian renewables player

May 19, 2022 01:03 PM ET
  • Baltex Progetti has a 300MW pipeline that consists of solar projects in Sicily and Sardinia
KGAL takes stake in Italian renewables player
Image: KGAL

KGAL has actually acquired a majority stake in an Italian solar and wind developer with a 300MW pipe.

The acquisition of the stake in Baltex Progetti is for influence fund KGAL ESPF 5.

Together with its Italian companion, KGAL will certainly complete the pipe projects and operate these as an independent power producer (IPP).

A couple of months after the first closing, this is already the fourth transaction for KGAL ESPF 5 and more investments are imminent, KGAL stated.

Baltex Progetti is planning solar parks in Sardinia as well as Sicily as well as wind farms in Emilia Romagna.

The first nuclear power plant are scheduled to be grid-connected in 2026.

During the operational phase, they will remain under the possession of the designer, who will after that work as an IPP.

Beyond the first pipe, the investment offers more development potential.

" For KGAL ESPF 5, holding a majority stake has the significant advantage of protecting accessibility to a broadly diversified, promising project pipeline in the highly affordable renewables market by means of just one transaction.", said Michael Ebner (pictured), taking care of supervisor and also head of sustainable infrastructure at KGAL Investment Management.

" Furthermore, we will certainly cover the entire worth chain from the early growth phase to the succeeding procedure of the plants as IPP.

" Accordingly, we expect to achieve an above-average return on the investment."

He claimed Baltex Progetti will take advantage of the collaboration also, as KGAL will add its knowledge in funding, structuring, procurement as well as offtake contracts, besides the equity needed for building and construction and also procedure.

With this 4th transaction, KGAL ESPF 5, which revealed its very first closing in December 2021, has actually already alloted greater than half of the equity raised to date.

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