I Squared Capital, a leading independent global infrastructure investment manager, announced today that its renewables platform Cube Green Energy has signed an agreement to acquire control of SUNfarming, a leading German photovoltaic (PV) developer and independent power producer with a focus on solar projects on agricultural land, known as “Agri-PV”. By joining forces with the founders of SUNfarming, Cube Green Energy will have an early-mover advantage in Germany’s Agri-PV market, unlocking synergies and advancing the company’s commitment to innovative solutions for Germany’s energy transition goals.
Agri-PV is an important segment in the German energy market as the country seeks to transition towards a fully decarbonized power system while ensuring a more independent, affordable, and resilient domestic energy supply. Agri-PV will also help Germany meet its PV capacity target of 215 GW by 2030 while preserving agricultural production.
SUNfarming is a German family-owned renewables developer which has built more than 650 MW of PV projects across Europe and developed a pipeline of close to 2 GW of Agri-PV capacity. The company is a market leader in the high-growth Agri-PV segment in Germany with expertise across the PV value chain from planning and construction to operational asset management. SUNfarming’s founding families trace their roots to the German farming sector resulting in deep and trusted relationships with farmers and local municipalities.
Through the combination, I Squared and Cube Green Energy will support SUNfarming in planning, constructing, and operating its ambitious pipeline. I Squared is targeting to deploy over €500 million of capital expenditure into the execution of SUNfarming’s Agri-PV pipeline by 2028, which will also provide the company with access to I Squared’s global equipment procurement strategy and scale. Since 2014, I Squared has committed $7 billion to wider energy transition initiatives.
Mohamed El Gazzar, Senior Partner at I Squared, said: “The expansion of renewable energies, and in particular solar energy, is an indispensable building block for achieving climate targets. As a German leader in Agri-PV, SUNfarming offers a win-win solution for climate and agriculture, which I Squared is delighted to support. We are excited to work with SUNfarming’s experienced management team to unlock the company’s full potential within the fast-growing renewable energy market in Germany.”
Raghuveer Kurada, CEO of Cube Green Energy, said: “Joining forces with SUNfarming presents Cube Green Energy with significant synergies in its existing onshore wind development business and neatly complements our strategy to implement innovative solutions for a future with 24/7 renewable energy. Cube Green Energy is delighted to have found a partner in SUNfarming that shares our values, and we look forward to working with such a highly successful and diversified renewables platform in Germany.”
Peter Schrum, founder of SUNfarming, said: “This transaction marks an exciting next stage for our company and brings us an important step closer to the crucial goal of driving the energy transition and creating a greener future. I Squared’s investment via Cube Green Energy gives further tailwind to SUNfarming’s dynamic development and underlines our strong position in the Agri-PV market. The deep market know-how as well as the financial strength of our new partner will help us to continue the success story of SUNfarming in the future. Our partners, customers, and employees will continue to receive services based on our core principles of reliability, sustainable growth, and responsibility.”
The parties have agreed to not disclose the financial details of the transaction, which is expected to close by Q1 2025. The transaction remains subject to obtaining customary regulatory clearances and conditions. SUNfarming founders and key management will retain a significant minority shareholding position and will otherwise continue their existing role in the company.
