Enel, acting through its renewable subsidiary Enel Green Power Brasil Participacoes Ltda., signed agreements with Chinese company CGN Energy International Holdings Co. Limited (CGNEI) for the sale of three fully operational renewable plants totaling 540 megawatts (MW), the Italian group announced Wednesday.
The three renewable assets for sale comprise two solar plants and one wind farm. The 292 MW Nova Olinda solar plant is located in Brazil's northeastern state of Piaui, and the 158 MW Lapa solar plant is in the northeastern state of Bahia. The 90 MW Cristalandia wind farm is also in Bahia.
The overall transaction consideration, to be paid at closing and which is expected by the end of the first quarter of 2019, is equal to the assets' enterprise value and amounts to approximately 2.9 billion Brazilian reais, equivalent to around €700 million at current exchange rates, a press release read.
"In line with the Group’s 2019-2021 Strategic Plan, this transaction aims to maximize and accelerate value creation by rotating assets to free up resources that can be invested in new projects, while Enel will continue operation and maintenance activities on the assets sold," the statement added.
According to the press release, all three plants have long-term power purchase agreements (PPAs) in place.
Lapa and Nova Olinda are supported by 20-year supply contracts that provide for the sale of specified volumes of energy generated by the plants to the Brazilian Chamber of Commercialization of Electric Energy. Cristalandia is also supported by 20-year PPAs with a pool of Brazilian electricity distribution companies.
By Hale Turkes