KGAL to gain from energy transition with GP Joule stake

Munich-based KGAL Investment Management has acquired a 25% stake in solar, wind and biomass energy provider GP Joule Projects for each of its funds KGAL ESPF 4 and KGAL ESPF 5.

KGAL explained in a statement that the two organisations are joining forces “to drive the energy transition, and to take advantage of the immense growth opportunities offered by renewable energies in Germany and across Europe”.

GP Joule Projects, part of the GP Joule Group, develops wind and solar energy projects. The company takes projects from land acquisition, through construction, providing ready-to-build projects or turnkey solar and wind power plants. The company has developed more than 20 wind farms and 130 solar parks with a total output of over 1,000 megawatts since it was founded in 2009.

Funds from the sale will be used for further development of existing projects and portfolio expansion. GP JOULE Projects is currently focusing primarily on Germany but the two firms want to step up expansion in Europe, taking advantage of KGAL’s international network.

“Investing in GP JOULE Projects means we are now able to enter greenfield development with a comprehensive portfolio,” said KGAL Investment Management managing director of sustainable infrastructure Michael Ebner.  “Our KGAL ESPF 4 and KGAL ESPF 5 funds will therefore have even better opportunities for diversification and the potential to further enhance returns. In addition, projects from the pipeline may be considered for investment by our impact fund KGAL ESPF 5.”

Commenting on the prospects for the German market Ebner said: “The new federal government aims to achieve a market share of green electricity of 80% by 2030; currently the figure stands at just around 40%. Therefore, the approval procedures for renewable projects are likely to be noticeably shortened.”