Enel will sell 540MW of operational wind and solar capacity in Brazil to Chinese buyer CGN Energy International (CGNEI) in a deal worth €700 million.
Under the agreement CGNEI will take 100% stakes in the 292MW Nova Olinda solar plant, the 158MW Lapa solar plant, comprising two facilities, as well as the 90MW Cristalandia wind farm.
The deal is expected to close during the first quarter of 2019, pending certain conditions, including approval by Brazilian antitrust authorities.
The sell-off will allow Enel to free up resources that can finance the company’s ongoing renewable development in Brazil.
Enel will continue to provide operations and maintenance related activities on the solar plants and wind farm.
Nova Olinda is located in the state of Piau, while Lapa and Cristalandia are situated in the Bahia, all in the north-east of the country.
Lapa is composed of the 80MW Bom Jesus da Lapa the78MW Lapa.
The Brazilian renewable market is rich in opportunities for Enel, which intends to keep growing in the country.
Enel will do this by financing its new investments through a build, sell and operate model.
Enel Green Power chief Antonio Cammisecra said: “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.”
All three plants have long-term power purchase agreements (PPAs) in place.
Lapa and Nova Olinda are supported by 20-year supply contracts for selling specified volumes of energy generated to the Brazilian Chamber of Commercialisation of Electric Energy.
Cristalandia is supported by 20-year PPAs with a pool of Brazilian electricity distribution companies.