KGAL acquires 50% stake in renewables developer GP Joule Projects, eyes expansion in Germany

GP Joule said it will use the funds from the purchase to expand its project portfolio. Image: GP Joule

German asset manager KGAL Investment Management has acquired a combined 50% stake in renewables developer GP Joule Projects, with the two companies intent on taking advantage of the “immense growth opportunities” of renewables across Europe, and in particular Germany.

The 50% figure is broken down into a 25% stake for each of its funds KGAL ESPF 4 and KGAL ESPF 5.

GP Joule Projects, part of the GP Joule Group, will use the undisclosed capital injection to further the development of existing projects and for portfolio expansion. The company focuses primarily on the German market and said that new federal government targets of 80% renewable electricity by 2030 would fast track its operations in the country.

In Germany, “the approval procedures for renewable projects are likely to be noticeably shortened,” said Michael Ebner, managing director of Sustainable Infrastructure at KGAL.

Meanwhile, the two companies are also eyeing greater expansion across Europe. “KGAL offers us access to new markets in Europe and, with its consistently sustainable focus, is a perfect fit for GP Joule,” said Ove Petersen, co-founder and CEO of GP Joule, adding that KGAL’s presence in 10 European countries meant it was “excellently networked”.

The companies said their “respective strengths” – project planning for GP Joule and “strong financing, structuring and PPAs” for KGAL – complemented each other.

“Investing in GP Joule Projects means we are now able to enter greenfield development with a comprehensive portfolio. Our KGAL ESPF 4 and KGAL ESPF 5 funds will therefore have even better opportunities for diversification and the potential to further enhance returns,” said Ebner.

Renewables developer GP Joule sells solar and wind assets or offers plants for sale as a turnkey option. Since 2009, it has developed more than 20 wind farms and 130 solar parks with a total output of over 1GW.

KGAL has completed multiple acquisitions from GP Joule in the past.