Enel, acting through its renewable subsidiary Enel Green Power Brasil Participacoes Ltda (EGP Brazil), closed the sale of three fully operational renewable plants totaling 540 megawatts to Chinese company CGN Energy International Holdings Co. Limited (CGNEI), the Italian group announced Friday.
"The overall consideration of the transaction paid to Enel upon closing is equal to the assets’ enterprise value and amounts to approximately 2.9 billion Brazilian reais, equivalent to around 660 million euros at current exchange rates," Enel’s statement read.
The sold assets are the solar plants Nova Olinda (292 MW), located in the northeastern Brazilian state of Piaui, and Lapa (158 MW) in the northeastern state of Bahia, as well as the 90 MW Cristalandia wind farm, also in Bahia.
According to the statement, the sale is in line with the Enel Group’s 2019-2021 Strategic Plan, and aims to maximize and accelerate value creation by rotating assets to free up resources that can be invested in new projects.
Enel will continue plant management activities on the assets, and seeks to keep growing in the country, including by financing its new investments through the Build, Sell and Operate model.
According to the press release, the group is the country's largest solar and wind player in terms of installed capacity and project portfolio with around 2.4 gigawatts (1,269 MW of hydro capacity, 752 MW from wind, and 370 MW from solar). It also has approximately 1.9 GW of wind and solar capacity in use.
Furthermore, in the country's conventional generation sector, the Enel Group operates around 320 MW from combined cycle gas turbines. And in the distribution sector, it is the largest player in Brazil with over 17 million end users served by its subsidiaries in Sao Paulo, Ceara, Rio and Goias. Enel also owns and operates two transmission lines with a total capacity of 2,100 MW connecting Brazil to Argentina.
By Hale Turkes