Enel completes sale of 540 MW of renewable capacity in Brazil

Enel S.p.A., acting through its renewable subsidiary Enel Green Power Brasil Participações Ltda, has closed the sale of 100% of three fully operational renewable plants totaling 540 MW to Chinese company CGN Energy International Holdings Co. Limited (CGNEI). The overall consideration of the transaction paid to Enel upon closing is equal to the assets’ enterprise value and amounts to approximately BRL2.9 billion (US$740 million).

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.

Enel will continue plant management activities on the assets sold.

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.

Nova Olinda is located in the municipality of Ribeira do Piauí. The facility, which is comprised of around 930,000 solar panels in an area of 690 hectares, can generate over 600 GWh per year. Lapa, which is located in Bom Jesus da Lapa, is composed of two facilities, Bom Jesus da Lapa (80 MW) and Lapa (78 MW). The park, which is comprised of about 500,000 solar panels, is able to generate around 340 GWh per year. The Cristalândia wind farm is located in the municipalities of Brumado, Rio de Contas and Dom Basilio. The wind farm is capable of generating around 350 GWh per year.