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STEAG unit forms JV with KGAL to develop 440 MW of solar in Italy

STEAG GmbH subsidiary STEAG Solar Energy Solutions, or SENS, signed a joint venture agreement with investment company KGAL Investment Management GmbH & Co. to develop up to 440 MW of ground-mounted solar photovoltaic capacity in Sicily, Italy.

The transaction marks the STEAG subsidiary's largest ever project, with a total of six solar parks in the provinces of Palermo and Trapani expected to provide over 350,000 households with renewable power.

Construction of the first section is scheduled to start at the end of 2020, with all the parks to be directly connected to the network of the Italian grid operator Terna through a newly-built transformer station by the end of 2021.

SENS has been maintaining and servicing various KGAL assets for over 10 years, in addition to implementing several large-scale photovoltaic installations in Italy.

"Italy, Spain and Germany will be the three most important European markets for SENS in 2020," Managing Director André Kremer said in a Dec. 9 news release.

STEAG, owned by a consortium of six German municipal utilities, is a major coal power producer.