January 24 (Renewables Now) - German investment and asset manager KGAL GmbH & Co KG is joining forces with compatriot engineering, procurement and construction (EPC) firm PFALZSOLAR GmbH to co-develop 176 MWp of solar power in Greece.
KGAL said today that a joint venture (JV) will develop and build the 81-MWp Volos and the 95-MWp Evros solar projects, located in the central and northern parts of the country, respectively.
According to the press release, Volos should be connected to the grid at the end of this year while Evros' connection is planned for autumn 2024.
Under the terms of the agreement, PFALZSOLAR will take charge of the planning, construction and operation of both plants. This will be done in partnership with local onsite partners. KGAL, on the other hand, is in charge of the JV's structuring and financing, as well as its equity participation.
Michael Ebner, Managing Director of KGAL Investment Management noted that these joint projects could also secure power purchase agreements (PPAs) or sell their electricity on the spot market.
This initiative represents the sixth transaction for the impact fund KGAL ESPF 5 since its launch on December 2021.
At present, Greece aims to add 1.3 GW of solar energy capacity per year, on average, by 2030.