Brazil sold a total of 450 megawatts of photovoltaic power plants
Enel S.p.A. signed agreements with CGN Energy International Holdings Co. Limited for the sale of 100% of three fully operational renewable plants totalling 540MW. The overall consideration of the transaction, to be paid at closing, is equal to the assets' enterprise value and amounts to approximately 2.9 billion Brazilian reais, equivalent to around 700 million euros at current exchange rates.
The three renewable assets being sold are the solar plants Nova Olinda (292MW), 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.
Antonio Cammisecra, Head of Enel Green Power, said: "With the sale of these assets we are capturing value for further growth in Brazil, where we are implementing a large pipeline of renewable projects. We remain focused on the opportunities offered by the Brazilian renewable market and we are continuing to invest in the country where Enel Green Power will play an active role by carrying out new projects and managing the fleet of operating plants."
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 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. 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 600GWh per year. Lapa, which is located in Bom Jesus da Lapa, is composed of two facilities, Bom Jesus da Lapa (80MW) and Lapa (78MW). The park, which is comprised of about 500,000 solar panels, is able to generate around 340GWh 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 350GWh per year.