The combination of strong solar radiation and above-average electricity prices make Italy an attractive market in Europe for solar PV projects. In addition, the Italian government has encouraged the expansion of renewable energy generation with the introduction of legislative initiatives in the past year. In doing so, the share of green energy within the total energy consumption is set to rise rapidly from 20% in 2030 to 30% in 2030. “The approval procedures have become much simpler and faster,” explains Michael Ebner, Managing Director of Sustainable Infrastructure at KGAL Investment Management. “KGAL, which is one of the largest solar PV investors in Italy, is benefitting from the growing momentum with its renewable energy funds and is, in turn, making a significant contribution to achieving the expansion targets.”
Among the KGAL projects that will soon go under construction is Tuscania, one of the largest solar parks ever approved in Italy with a capacity of 150 MWp. Just 30 km away, KGAL has also achieved ready to build status for the Vitorchiano solar park which has approximately 90 MWp. The location of these two plants between the north of Italy and Rome is strategically advantageous, as higher electricity prices can be achieved in this region. The third approved solar park, Pietra Monreale, which has an installed capacity of 140 MWp, is being built in Sicily offering strong solar radiation. In addition to electricity generation, the land surrounding this so-called agricultural solar park will also be used for farming purposes, such as olive and fruit cultivation.
Green electricity for 600 000 households
The Pietra Monreale solar park is part of KGAL’s extensive project pipeline in Sicily, which will be expanded to 700 MW of installed capacity in several sections over the next few years. KGAL ESPF 4 accounts for one part of this pipeline, while its successor KGAL ESPF 5 accounts for the remainder. This new KGAL impact fund also recently acquired a majority stake in Italian project developer Baltex Progetti, which has a solar and wind pipeline of more than 300 MW of capacity. Altogether, these Italian projects have a development potential of more than 1.2 GW – theoretically being able to supply approximately 600 000 households with green electricity.
“KGAL ESPF 5, which has its first closing last December, continues to pursue the very successful Core+ strategy of its predecessor, but also complies with the even stricter ESG criteria for SFDR Article 9 funds,” explains Florian Martin, Managing Director with responsibility for institutional clients at KGAL Investment Management. “Within a matter of months, the fund management team was able to allocate more than 50% of the fund’s initial capital to four projects. Following the successful launch of the fund, investor interest in KGAL ESPF 5 remains strong.”
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
Energy Global's Spring 2022 issue
The Spring 2022 issue of Energy Global includes a range of technical articles on energy storage, wind, solar, waste-to-energy, and more. In addition, this issue also features a regional report on the renewable energy market in Asia.
