Enel, through its subsidiary for renewables Enel Green Power Brasil Participações Ltda, has finalized the sale of 100% of three operating renewable plants, for a total capacity of 540 MW, to the Chinese company CGN Energy International Holdings Co. Limited. The total consideration for the transaction, paid to Enel at the closing, is equal to the enterprise value of the plants and amounts to approximately 2,9 billion Brazilian real, equivalent to approximately 660 million euros at current exchange rates.
The three Brazilian plants involved in the sale are the solar parks of Nova Olinda (292 MW) and Lapa (158 MW), in the northeastern states of Piauí and Bahia, respectively, as well as the wind farm of Cristalândia (90 MW) also in Bahia. The consideration for the sale is subject to adjustments in line with normal market practices for this type of transaction.
In line with the Group strategic plan for 2019-2021, this operation aims to maximize and accelerate the creation of value through an asset rotation, freeing up resources that can be invested in new projects, while Enel will continue the management activities of the assets sold. The Brazilian renewables market is full of opportunities for the Group, which intends to continue to grow in the country, also by financing new investments through the "Build, Sell and Operate" (BSO) model.
All three plants have Long Term Power Purchase Agreements (PPAs). Lapa and Nova Olinda are accompanied by twenty-year supply contracts which provide for the sale of specific volumes of energy generated by the plants to the Brazilian Chamber of Commercialization of Electricity (Câmara de Comercialização da Energia Elétrica or CCEE). Cristalândia is accompanied by twenty-year supply agreements with a pool of Brazilian electricity distribution companies.
The Nova Olinda plant is located in the municipality of Ribeira do Piauí, consists of nearly 930.000 solar panels on an area of 690 hectares, and can generate over 600 GWh per year. Lapa is located in Bom Jesus da Lapa and consists of two plants, Bom Jesus da Lapa (80 MW) and Lapa (78 MW). The park, which is made up of around 500.000 panels, can generate around 340 GWh per year. The Cristalândia wind farm is located in the municipalities of Brumado, Rio de Contas and Dom Basilio, and has a generation capacity of approximately 350 GWh per year.
