Germany's ecological projects loan provider UmweltBank AG has committed 'mid-double-digit million' as financing for what's touted as the country's largest independent solar PV project with over 171 MW capacity, currently under construction.
"The Tramm-Göthen solar farm is another milestone on Germany's way to energy transition and a lighthouse project of UmweltBank's loanbook," said UmweltBank's Board Member Goran Bašić.
Owned by renewable energy funds for institutional investors advised by European asset manager Luxcara, the subsidy free Tramm-Göthen Solar Farm is coming up in the municipalities of Tramm and Lewitzrand in the north-eastern state of Mecklenburg-Western Pomerania. These funds are equity investors in the project.
Calling it a landmark transaction, Luxcara said proceeds from environment focussed bank UmweltBank will be used to fund the ongoing construction of the facility to bring it online in Q1/2022. Power generated will be sold under 10-year power purchase agreement (PPA).
In May 2021, RWE Supply & Trading Division entered a PPA with Volkswagen to source 170 GWh of solar power from this facility from 2022 onward to sell it to the German car maker (see Volkswagen To Source 170 GWh Solar Power Annually).