Enel sells 540 MW of renewable capacity in Brazil to China's CGNEI

Enel S.p.A. signed an agreement with Chinese company CGN Energy International Holdings Co. Limited (CGNEI) for the sale of 100% of three fully operational renewable plants totaling 540 MW. The overall consideration of the transaction, to be paid at closing, is equal to the assets’ enterprise value and amounts to approximately BRL2.9 billion (US$0.76 billion).

The three renewable assets being sold are:

• 292 MW Nova Olinda solar plant 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.
• 158 MW Lapa solar plant 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.
• 90 MW Cristalândia wind farm located in the municipalities of Brumado, Rio de Contas and Dom Basilio. The wind farm is capable of generating around 350 GWh per year.

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 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.

The closing of the sale of the three plants is expected by the end of the first quarter of 2019, pending certain conditions precedent, including approval by Brazilian antitrust authorities. The consideration is subject to adjustments in line with standard market practice for this type of transaction.

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.