• Agreement signed with Chinese company CGNEI to sell 100% of solar plants Nova Olinda (292 MW) and Lapa (158 MW) as well as the 90 MW Cristalândia wind farm
• The transaction is aimed at freeing up resources that can finance Enel’s further renewable development in Brazil, while the company will continue O&M activities on the assets sold
• Closing of the deal expected by 1Q 2019

Enel S.p.A., acting through its renewable subsidiary Enel Green Power Brasil Participações Ltda ("EGP Brazil"), signed agreements with Chinese company CGN Energy International Holdings Co. Limited (“CGNEI”) for the sale of 100% of three fully operational renewable plants totalling 540 MW. 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 (292 MW), located in the northeastern 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.

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 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. 

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 (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.