Brazil 540 mw Photovoltaic (pv) project
Enel Green Power Brasil Participações Ltda closed the sale of 100% of three fully operational renewable plants totalling 540MW to Chinese company CGN Energy International Holdings Co. Limited. The overall consideration of the transaction paid to Enel upon closing is equal to the assets' enterprise value and amounts to approximately 2.9 billion Brazilian reais, equivalent to around 660 million euros at current exchange rates.
The three renewable assets that were just 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. 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 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 model.
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 (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 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.