Enel Green Power sells three Brazil renewables plants
Enel Green Power Brasil Participações has signed agreements with Chinese company CGN Energy International Holdings for the sale of three fully operational renewable energy plants in the country, a deal on which the company’s in-house legal team advised.
The three plants, two solar facilities and a wind farm, have a combined generation capacity of 540 megawatts. The transaction is valued at 2.9 billion reais ($774 million), according to a company statement.
The three plants are the 292-megawatt Nova Olinda solar facility (pictured), located in the state of Piauí, and the 158-megawatt Lapa, located in Bahia, in addition to the 90-megawatt Cristalândia wind farm, also in Bahia.
All three plants have long-term power purchase agreements in place.
In line with the company’s 2019-2021 strategic plan, the transaction aims to maximise and accelerate value creation by rotating assets to free up resources that can be invested in new projects, according to a company statement. Enel will continue operation and maintenance activities on the assets sold.
“The Brazilian renewables market is rich in opportunities for the group, which wants to keep growing in the country, including by financing its new investments through the build, sell and operate model,” Enel Green Power said.
“With the sale of these assets we are capturing value for further growth in Brazil, where we are implementing a large pipeline of renewable projects,” according to Antonio Cammisecra, head of Enel Green Power. “We remain focused on the opportunities offered by the Brazilian renewable market, and we are continuing to invest in the country where Enel Green Power will play an active role by carrying out new projects and managing the fleet of operating plant,” he added.
The closing of the sale of the three plants is expected by the end of the first quarter of 2019, pending certain conditions, including approval by Brazil’s antitrust authorities.
The Enel Group is active in Brazil in the generation, distribution and transmission sectors through Enel Brasil and its subsidiaries. In the generation sector, the group is the country’s largest solar and wind player in terms of installed capacity and project portfolio, with a total installed capacity of around 3 gigawatts.
