Keppel Infrastructure Fund Management Pte. Ltd. (KIFM), managing Keppel Infrastructure Trust (KIT), plans to invest up to €109m (around S$159m) [1] to acquire a 45% effective stake in Enpal B.V.’s (Enpal) solar portfolio (AssetCos) via a special purpose vehicle (SPV). Enpal, Germany’s initial green tech unicorn and among Europe’s leading residential solar installers and fastest-growing energy firms [2], installs over 2,500 new solar energy systems monthly. [3]
KIT will own 50% of the SPV, with Equitix Investment Management Limited (Equitix) and co-investors holding the remaining 50%. The SPV will acquire a 90% stake in Enpal’s solar portfolio while Enpal retains the remaining 10%.
The portfolio is expected to comprise 60,000 bundled solar photovoltaic (PV) systems [4] across Germany with an anticipated combined generation capacity of 585 MW. It’s projected to include over 55,000 battery storage systems and 30,000 electric vehicle charging units. These solutions, leased to households under 20-year agreements, promise predictable cash flows to KIT. Enpal will continue monitoring and maintaining the PV systems for 20-year periods under agreements with the AssetCos.
The acquisition will occur in four phases, with the first closing, including over 53,500 systems, slated for completion by end-2023, and the remaining over 6,500 systems by end-June 2024.
Kevin Neo, CEO of KIFM, stated, “We’re thrilled to contribute to solar energy adoption and expand within Germany’s growing renewable energy sector, aligned with the nation’s carbon neutrality goal by 2045. This significant investment in Enpal’s home solar portfolio marks KIT’s debut in solar energy and broadens our renewable investments beyond wind.”
Enpal meets rising demand for solar power amidst Germany’s fossil fuel reduction efforts. Their renewable solutions enable households to install PV systems, batteries, and EV chargers without high initial costs. Leasing these systems from Enpal is generally more economical for households than purchasing grid electricity. Moreover, households can sell excess generated electricity to the grid at an attractive feed-in-tariff.
Funding for the investment will come from internal funds or external borrowings. Post-transaction, KIT’s assets under management (AUM) will rise from S$7.3 billion in FY 2022 to approximately S$8.4 billion [5], with renewables constituting 22% of the total AUM.
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