Encavis Asset Management AG (Encavis AM) and Commerzbank AG (Commerzbank) announced today that they have closed the financing for the Bartow project, a solar park that will become the second largest in Germany.
The park, located in the municipality of Bartow, around 150 kilometers north of Berlin in the German state of Mecklenburg-Vorpommern, will have an installed capacity of 260 MW.
Total financing of €145 million is being provided by Commerzbank, a major player in the financing of renewable energy projects in Europe.
The Encavis Infrastructure Fund IV (EIF IV), whose subscriptions are open via BayernLB, is providing the necessary equity.
The project incorporates a significant proportion of green electricity production, which will be sold to LyondellBasell (NYSE: LYB) through a 12-year power purchase agreement (PPA).
The first phase of construction began in March 2024, and the project is scheduled for completion by the end of 2025.
This development is part of ongoing efforts to support Germany’s energy transition and increase the country’s renewable energy production capacity.
Successful collaboration for a large-scale project
Przemyslaw Damps, Head of Project Finance Origination at Commerzbank, emphasizes that support for this project reflects the bank’s commitment to innovative initiatives in the renewable energy sector.
The challenges of structuring the PPA and securing the land were resolved through close cooperation between Commerzbank and Encavis AM teams.
This collaboration highlights the importance of partnerships in financing large-scale projects and their contribution to the energy transition.
Encavis AM, a subsidiary of Encavis AG, has accumulated extensive experience in the field of renewable energies since 2006.
The Encavis Group is renowned for its investments in wind and solar farms in Europe, with a total capacity of over 3.5 GW.
This expertise, combined with the support of Commerzbank, makes it possible to bring to fruition large-scale projects such as Bartow.
Stern Energy S.p.A., also a member of the Encavis Group, provides technical know-how for the construction and maintenance of photovoltaic systems throughout Europe.
Outlook and impact for the industry
The Bartow solar park represents a significant development for the renewable energy market in Germany.
Its 260 MW production capacity will make a substantial contribution to reducing CO2 emissions, in line with the country’s energy transition objectives.
The long-term sale of electricity via the PPA with LyondellBasell reinforces the project’s financial stability and ensures its seamless integration into the energy grid.
This project illustrates the crucial role of financial partnerships in supporting sustainable energy initiatives.
The successful financing of the Bartow solar park demonstrates the ability of financial institutions to support large-scale projects while contributing to the global energy transition.
