Shell Energy Europe has signed a 10-year power purchase agreement (PPA) with German investment and asset manager KGAL GmbH for a 60 MW solar park.
Under the PPA, Shell will purchase all electricity generated by the Calvörde Ost solar plant, which KGAL brought online in autumn 2024.
KGAL originally acquired the solar plant in 2023 through the KGAL ESPF 5 renewable energy fund in 2023.
Located near the city of Magdeburg, Germany, the solar plant is anticipated to generate around 60,000 MWh per annum – equal to 29,000 homes. It will additionally offset 39,000 tonnes of CO2 emissions.
Calvörde Ost is part of the Calvörde Cluster, which is also owned by the KGAL ESPF 5 fund. The Cluster includes the Calvörde West (40 MW) and Grauingen (20 MW) solar farms. Connection for these solar plants is expected for autumn 2025.
KGAL’s Head of Performance Management, Katrin Werner, said: “With the PPA, we have now reached another important milestone.
“We are securing attractive long-term cash flows for our investors.”
