KGAL Investment Management has sealed a power purchase agreement (PPA) with Italian energy supplier Edison SpA that secures the output of a 150-MW solar plant in Lazio it will switch on next year.
The deal unveiled by KGAL on Tuesday will see Edison buy “much of the electricity” to be generated by the Tuscania photovoltaic (PV) farm, with the power to be sold at a fixed price for over 10 years. The asset is held by KGAL ESPF 4 fund, which in the summer completed its investment phase with a renewables portfolio totalling 2.2 GW.
Set to become one of Italy’s largest solar parks, Tuscania will have an annual output of roughly 240 GWh that will help offset more than 100,000 tonnes of carbon dioxide (CO2) emissions annually. Its commissioning is scheduled for the second half of 2024.
At present, KGAL has 30 solar parks and hydropower plants in Italy and is working on over 500 MW of PV and wind projects that are in the planning stages or under construction. Commenting on the Italian market, where it has been operating since 2010, the investment manager said that the country is one of the most important markets in its European renewable energy portfolio thanks to its favourable climate conditions and supportive regulatory framework.
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