Enel Closes Sale of 540 MW of Renewable Capacity in Brazil
Rome, Italy - The Italian based energy company, Enel, acting through its renewable subsidiary Enel Green Power Brasil Participações Ltda ("EGP Brazil"), closed the sale of 100 percent of three fully operational renewable plants totalling 540 MW to Chinese company CGN Energy International Holdings Co. Limited.
The three renewable assets that were just sold are the solar plants Nova Olinda (292 MW), located in the north-eastern Brazilian state of Piauí and Lapa (158 MW), situated in the north-eastern Brazilian state of Bahia, as well as the 90 MW Cristalândia wind farm, also in Bahia. The consideration paid to Enel for the sale of these three assets is subject to adjustments in line with the standard market practice for this type of transaction.
According to Endel, in line with the Group’s 2019-2021 Strategic Plan, this transaction aims to maximise and accelerate value creation by rotating assets to free up resources that can be invested in new projects, while Enel will continue plant management activities on the assets sold. The Brazilian renewable 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 (BSO) model.
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 Commercialisation of Electric Energy (Câmara de Comercialização da Energia Elétrica or CCEE). Cristalândia is supported by 20-year PPAs with a pool of Brazilian electricity distribution companies.
Source: IWR Online, Jun 06 2019