KGAL Investment Management has acquired the Rekum wind repowering project in Germany from Energiequelle. The asset replaces two 1.8 MW legacy turbines with two 7 MW Nordex N163 units, lifting total capacity to 14 MW. Construction began in July 2025, with COD targeted for Q3 2026.

The core insight: this is a tariff-backed capacity upgrade, not a merchant bet. The project benefits from a 20-year EEG feed-in premium, with a volume-weighted average award price of €73.3/MWh. Revenue is structured as a fixed market premium on top of wholesale pricing, materially reducing price risk.

Repowering drives the economics. Annual output is expected to reach 38.7 GWh, with efficiency increasing by roughly 800% versus the legacy turbines. Same site, existing grid access, higher yield per connection point. That combination lowers development risk and improves capital productivity.

Commercially, this is about underwriting certainty. Long-dated, state-backed pricing supports predictable cash flows, while modern turbine scale enhances IRR without new land or interconnection battles.

The signal is clear: in Germany, repowering under the EEG remains one of the cleanest ways to deploy capital into de-risked renewable capacity.

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