Enel acting through its renewable subsidiary Enel Green Power Brasil (EGP Brazil), recently closed the sale of 100% of three fully operational renewable plants totalling 540MW to Chinese company CGN Energy.
According to a company statement, the overall consideration of the transaction paid to Enel upon closing is equal to the assets’ enterprise value and amounts to approximately €660 million ($743 million) at current exchange rates.
The three renewable assets are the solar plants; Nova Olinda (29MW), located in the north-eastern Brazilian state of Piauí and Lapa (158MW), situated in the north-eastern Brazilian state of Bahia, as well as the 90MW 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.
“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 company stated.
Enel in the Brazilian renewable market
The group noted that the Brazilian renewable market is rich in opportunities, of which the company wants to keep growing in the country, including by financing of 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. In terms of capacity, the plants boast as follows:
- Nova Olinda comprises of around 930,000 solar panels in an area of 690 hectares and can generate over 600GWh per year.
- Lapa is composed of two facilities, Bom Jesus a Lapa (80MW) and Lapa (78MW). The park, which is comprised of about 500,000 solar panels, is able to generate around 340GWh per year.
- Lastly, Cristalândia wind farm is capable of generating around 350GWh per year.
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