Commerz Real’s Klimavest enters French electricity market with wind farm from BayWa r.e.
20-year state feed-in tariff secured
CO2 reduction of at least approx. 6,700 t, annual electricity consumption of more than 11,000 households covered
Commerz Real has acquired the wind farm Tout Vent in the Nouvelle-Aquitaine region, located in the western part of France close to the Bay of Biscay, from BayWa r.e. for its Klimavest impact fund. The fund is thus entering the French electricity market. “As a result we are tapping important investment opportunities for our investors and further diversifying our portfolio,” explains Timo Werner, a fund manager for Klimavest. According to Commerz Real, additional purchases of wind farms and solar parks in France are planned.
As a result we are tapping important investment opportunities for our investors and further diversifying our portfolio.
Timo Werner, a fund manager for Klimavest
Tout Vent was connected to the national grid in August 2021 and comprises six turbines from the leading manufacturer Nordex with a total installed capacity of 18 MW. The planned annual energy production of about 59,300 MWh would be able to meet the average annual energy consumption of more than 11,000 French households (basis: Statistical Office of the European Union), and thus reduce greenhouse gas emissions by some 6,700 tonnes each year. A state feed-in tariff for 20 years had previously been secured by BayWa r.e. Commerz Real had already realised three projects in Spain and Germany with the international project developer and service provider in the past. The service team at BayWa r.e. will also be responsible for the operational management of this wind farm in the future.
With Klimavest in November 2020 Commerz Real launched the first and to date only impact fund focusing on real assets for private investors. In the course of its term it is intended to develop a portfolio of plants for the generation of renewable energy, as well as sustainable infrastructure, mobility and forestry with a value of at least 25 billion euros, with about 10 billion euros thereof in the form of equity capital. In contrast to conventional sustainability funds, Klimavest is investing in those assets which make a tangible and thus demonstrable contribution to a reduction in greenhouse gas emissions. Furthermore, there are additional strict sustainability parameters pursuant to the current EU Taxonomy Regulation. The fund management is aiming to attain an annual return (using the BVI method) of between 3.0 and 4.0 per cent. Investors can participate with sums of 10,000 euros upwards, and in addition to seeing value appreciation they are provided with regular reporting on the impact of the assets in the fund on the climate. An investment horizon of at least five years is recommended. The shares in the open-ended fund can be redeemed on each trading day at the net asset value, however.