Enel's renewable energy subsidiary Enel Green Power Brasil (EGP Brasil) has agreed to sell three operational solar and wind projects to the Chinese company CGN Energy International (part of the China General Nuclear Power Corporation (CGN)) for a total consideration of BRL2.9bn (around US$775m). The transaction is expected to close at the end of the first quarter of 2019.
The agreement includes the 292 MW Nova Olinda solar plant (in the state of Piauí), the 158 MW Lapa solar power plant (Bahia), and the 90 MW Cristalândia wind park (Bahia). The three power plants are supported by 20-year power purchase agreements (PPAs). Nova Olinda and Lapa sell power to the Brazilian Chamber of Commercialisation of Electric Energy (Câmara de Comercialização da Energia Elétrica or CCEE), while Cristalândia is supported by 20-year PPAs with several Brazilian power distribution companies.
With this transaction, Enel intends to free up resources in order to finance its further renewable development in the country, in line with its 2019-2021 Strategic Plan. In Brazil, the group will invest in new projects under the Build, Sell and Operate (BSO) model.