Enel will continue operation and maintenance (O&M) activities on the assets sold. Credit: Enel
Enel subsidiary Enel Green Power Brasil (EGP Brazil) has signed agreements to sell three fully operational renewable energy projects totalling 540MW in Brazil to Chinese company CGN Energy International Holdings (CGNEI) for approximately BRL2.9 billion (US$776 million).
The three renewable assets being sold include 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.
Proceeds from the sale will be invested in new projects in Brazil, which Enel described in a release as "rich in opportunities".
Enel will continue operation and maintenance (O&M) activities on the assets sold.
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.
All three plants have 20-year power purchase agreements (PPAs) in place with the solar plants to sell power to the Brazilian Chamber of Commercialisation of Electric Energy (Câmara de Comercialização da Energia Elétrica or CCEE).
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.
In Brazil, Enel is the largest solar and wind player in terms of installed capacity and project portfolio with a total installed capacity of around 3GW from renewables (1,269MW of hydro capacity, 842MW from wind, 820MW from solar). Enel Green Power Brasil Participações started construction of the 475MW São Gonçalo solar park in São Gonçalo do Gurguéia, located in the Brazil’s northeastern state of Piauí in October 2018.