Power Purchase Agreement: KGAL And Edison Sign Power Supply Agreement For 150 MW Solar Park in Italy

Grünwald, Germany - KGAL Investment Management has signed a 10-year power purchase agreement (PPA) with the Italian utility Edison for its solar park "Tuscania" from the KGAL ESPF 4 fund.

The solar park is located in the Lazio region in central Italy. With a capacity of 150 MW, the project will be one of the largest solar parks in Italy. After completion of the construction phase, electricity production is scheduled to start in the second half of 2024. The solar park will produce approximately 240 million kWh (240 GWh) of electricity per year, avoiding the emission of more than 100,000 tons of CO₂ per year in Italy.

KGAL has been active in the Italian renewable energy market since 2010. Its portfolio includes more than 30 solar parks and hydropower plants. Further solar and wind parks with a total capacity of more than 500 MW are in planning or under construction.

"Much of the electricity produced by our ‘Tuscania’ plant will go to our contractual partner Edison at a fixed price over a 10-year period. For KGAL ESPF 4 investors, the PPA represents an attractive, long-term source of income. In addition, we are pleased to support Edison, as one of Italy’s leading electricity suppliers, in its ambitious decarbonisation plans", said Katrin Werner, Head of Project Implementation Sustainable Infrastructure at KGAL.

"We at Edison have an important organic development plan to increase green installed capacity from the current 2 GW to 6 GW by 2030, accompanied by the goal of increasing renewable production to 40 per cent. With agreements like this one with KGAL we offer an important stimulus to the market in bringing new renewable megawatts on the ground and at the same time we make our portfolio more competitive and diversified", added Fabio Dubini, Executive Vice President Gas & Power Portfolio Management & Optimization at Edison.

KGAL was advised by the law firm Green Horse during the contract negotiations and is implementing the project in collaboration with Comal SpA, CR Project Service Srl and Nousfera Lab Srl.

Source: IWR Online, 12 Oct 2023