Insurance group Alte Leipziger Hallesche (ALH Group) has agreed to indirectly acquire 49.9% stake in a 597MW solar portfolio in Germany.
The portfolio, which includes 16 solar farms, belongs to EnBW Energie Baden-Württemberg.
The companies did not divulge the financial details of the transaction.
EnBW CFO Thomas Kusterer said: “In the ALH Group, we are delighted to have found an investor with a long-term commitment to ENBW’s solar projects. The partnership covers the entire operating life of the solar farms.
“Selling minority stakes on the basis of investment models is part of EnBW’s renewable energy business model. We plan to invest the sale proceeds in new growth projects in the renewable energy and grids segments. This is more important now than ever before, because every megawatt-hour from renewables makes Germany a little less dependent on fossil fuels.”
The farms under the transaction are located in the German states of Brandenburg, Baden-Württemberg, Bavaria, Mecklenburg-Western Pomerania, Rhineland-Palatinate and Saxony. It includes Weesow, Gottesgabe and Alttrebbin solar projects.
All the farms were developed by EnBW, which will continue to manage, service and maintain the assets.
Together, the plants will produce 580 gigawatt-hours of energy annually on an average, enough to meet the requirements of more than 200,000 three-person German households.
Commenting on the investment, ALH Group chief investment and finance officer Martin Rohm said: “The investment is an important contribution towards our goal of substantially expanding the sustainability of our investment activities.
“As one of Germany’s biggest energy groups, EnBW is among the leaders in developing and operating renewable energy installations. We look forward to long-term partnership and working relationship.”
The transaction is slated to close in autumn this year, subject to regulatory approvals.
