The renewable energy fund KGAL ESPF 5 has successfully bid for three wind turbines from BayWa r.e. The wind farm, located in Reichenbach, Rhineland-Palatinate, has a total capacity of 18.6MW and is nearing completion. KGAL is planning further acquisitions in Germany and the Czech Republic for its impact fund, which will have its final close in October 2024.
The Reichenbach wind farm is located 35km northwest of Kaiserslautern. The three Vestas wind turbines, each with an output of 6.2MW, will be connected to the grid in November 2024. KGAL ESPF 5 secures attractive cash flows through a feed-in tariff for a period of 20 years from commissioning.
Portfolio manager, Carsten Haubner, commented: “The German market for onshore wind turbines is suffering from a significant supply shortage, and projects of this technology and quality are rare in the current environment.”
Jonathan May, Head of Institutional Business International at KGAL, added: “With this investment, the technological diversification of the KGAL ESPF 5 portfolio continues to progress, and our investors will benefit from stable long-term returns in the near future.”
In line with its core-plus strategy, the fund has so far made 13 investments in six European countries, including renewable energy projects with a generation capacity of 1.1 gigawatts and a development pipeline of around 2 gigawatts.
Written by Leon Goldwater for Europe Real Estate.
Image credit: BayWa r.e.
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