Power Producer Encavis AG’s Fund Closes Investment Phase with €1.13 Billion

Encavis Infrastructure Fund II renewable portfolio stands at 680 MW


Europe-based independent power producer Encavis AG’s fund Encavis Asset Management completed the investment phase of the Encavis Infrastructure Fund II (EIF II) with a total value of €1.13 billion (~$1.19 billion).

EIF II is a pan-European renewable portfolio created in 2017. Currently, it is one of the largest clean energy funds in Germany, with investments in ~680 MW of capacity.

EIF II recently acquired two solar parks in Germany with a total capacity of 45 MW in the Rhineland-Palatinate. While one solar park will be connected to the power grid this year, the second park will likely be connected in the first half of next year.

Encavis said the two parks together would help reduce 327,500 tons of carbon emissions annually.

With the latest acquisitions, EIF II’s diverse portfolio now includes 22 wind and 21 solar farms in Germany, France, the Netherlands, Spain, and Finland.

The total installed renewable capacity is currently over 3.4 GW, helping mitigate more than 1.4 million tonnes of carbon emissions annually.

EIF II is an alternative investment fund created for banks, distributed exclusively by investment bank BayernLB.

Encavis Asset Management AG is a wholly owned subsidiary of MDAX-listed Encavis AG.

Spokesman of the Management Board of Encavis Asset Management AG, Karsten Mieth, said, “We will continue to leverage our market-leading expertise in the renewable energy sector to rapidly advance the energy transition. To this end, two further institutional funds are currently raising money: EIF IV, which -as the successor fund of the EIF II- is targeting banks, and the EIF V, which is designed for insurance companies and pension funds.”

Senior Director of Alternative Investments at BayernLB, Herbert Schädler, observed, “The focus of EIF II on the regulatory needs of the (savings) banks and on exclusively one asset class (Renewable Energies), which provides investors with maximum transparency, were the basis for the extraordinarily strong investor demand. The target volume was clearly exceeded and finally reached 480 million euros of equity.”

Encavis has been actively acquiring clean energy projects to expand its renewable portfolio. Last month, the company acquired a 55 MW ready-to-build solar project in Spain from Hive Energy, a UK-based renewable energy developer.

In October this year, the power producer completed non-recourse project financing of €32 million (~$33.79 million) for the Danish solar parks Svinningegården in the north-western part of Zealand with a generation capacity of 34 MW and Rødby Fjord on Lolland in south-western part Zealand.