The Czech Republic is developing into a highly attractive market for investors, with its climate targets having been increased several times. For example, the capacity of solar power is set to more than double from the current 3.6 gigawatts to 8 gigawatts by 2030, while the target for wind power is set to triple to 1.5 gigawatts. \u201cIn order to achieve these targets, investors are receiving state subsidies for their projects,\u201d explains Andr\u00e9 Z\u00fccker, Co-CEO of KGAL. \u201cSolar and wind projects are responding with dynamic expansion.\u201d In addition, electricity prices in the Czech Republic show low volatility, and the spot market is traded in euros.<\/p>\n
Another special feature of this market is the electricity mix, which still consists of more than 40 percent coal-fired generation; the CO2 impact is therefore well above the EU average. Andr\u00e9 Z\u00fccker continues: \u201cWith the climate-neutral electricity from the solar park near Most, our KGAL ESPF 5 fund will achieve a particularly high impact.\u201d The construction phase will begin shortly and grid connection is planned for the third quarter of 2025. The electricity will mainly be marketed through a long-term power purchase agreement (PPA).<\/p>\n
Optimally networked partners<\/strong><\/p>\n The seller of the project is Sev.en Inntech a.s. The Czech company also operates the local power grid to which the solar park will be connected next year. \u00a0Petr Lenc, a general manager and vice-chairman of the board of Sev.en Inntech a.s., is looking forward to the collaboration: \u201cWe decided in favour of KGAL for two reasons: First, we were impressed by the asset manager\u2019s many years of experience with renewable energies. Second, the discussions proved KGAL\u2019s intensive focus on the potential of this project.\u201d KGAL Co-CEO Andr\u00e9 Z\u00fccker comments on the transaction: \u201cSev.en Inntech is a remarkably well-connected partner. We can well imagine further joint projects.\u201d<\/p>\n The solar park \u201cPVPP Saxonie\u201d is a renewable energy project developed by Sev.en Inntech a.s. in the post-mining area of the former lignite quarry \u010cSA, located in the Most district. This project is part of the company\u2019s extensive portfolio of sustainable and innovative initiatives both within and outside the Czech region of North Bohemia.<\/p>\n As an EPC service provider, Micronix is responsible for the construction of the solar park. Since the company will also acquire a minority stake in the project, there is an even greater interest in completing the project on schedule. KGAL has already worked successfully with Micronix in the past.<\/p>\n KGAL ESPF 5 exceeds target return<\/strong><\/p>\n With the Most Solar Park, KGAL ESPF 5 further strengthens its successful portfolio with a presence in Germany, Greece, Italy, Poland, Spain and the Czech Republic. \u201cOver 80 percent of the 350 million euros in equity has already been allocated and 43 percent deployed,\u201d emphasises Florian Martin, Co-CEO of KGAL. \u201cThrough its investments, our impact fund covers all life cycle phases from project development to operations. Investments are generally made at an early stage in order to participate in a large part of the value creation.\u201d<\/p>\n The strategy is paying off. \u201cWe significantly exceeded our original plans and are now aiming for a clear double-digit return for ESPF 5,\u201d explains Florian Martin. \u201cAs the fund has also invested in three successful developers in Germany, Italy and Spain, our investors have access to a total of more than 200 projects \u2013 an unprecedented diversification with enormous potential for the coming years.\u201d Institutional investors still have the opportunity to participate in this portfolio at the final closing in October.<\/p>\n","protected":false},"excerpt":{"rendered":" KGAL ESPF 5 has successfully entered the promising Czech market with the purchase of the 50-megawatt solar project \u201cPVPP Saxonie\u201d near the northern Bohemian city of Most. With Sev.en Inntech and Micronix, KGAL has two experienced partners at its side for the realisation of the solar park. This is the eleventh transaction for ESPF 5, in its sixth European country. The final closing of this Article 9 impact fund will take place in October 2024.<\/p>\n","protected":false},"author":5,"featured_media":5535,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"wds_primary_category":0,"footnotes":""},"categories":[1,41],"tags":[],"class_list":["post-5556","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-en","category-sustainable-infrastructure-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/posts\/5556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/comments?post=5556"}],"version-history":[{"count":1,"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/posts\/5556\/revisions"}],"predecessor-version":[{"id":6725,"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/posts\/5556\/revisions\/6725"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/media\/5535"}],"wp:attachment":[{"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/media?parent=5556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/categories?post=5556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kgal.de\/en\/wp-json\/wp\/v2\/tags?post=5556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}