Italian energy group Enel, through its affiliate Enel Green Power, has divested an 80% stake in a Mexican renewable power portfolio with a total capacity of 1.8 GW to the Canadian investor Caisse de dépôt et placement du Québec (CDPQ) and an investment vehicle of CKD Infraestructura México (CKD IM). The 100% stake is estimated at US$2.6bn, of which US$300m in equity, US$800m of project financing and US$1.5bn of related party loans.
The transaction comprises Enel's interest in eight special purposes vehicles (SPVs), of which three wind plants (429 MW) are already in full operation, three solar parks have been recently connected (namely the 469 MW Villanueva I, 359 MW Villanueva III and 260 MW Don José solar parks, totalling 1,089 MW, connected to the Mexican grid at the end of September 2018), and two wind projects are still under construction (a total of 300 MW). The portfolio comprises 700 MW of wind power generation capacity: the 198 MW Amistad, 200 MW Dominica, 129 MW Palo Alto, 103 MW Salitrillos and 100 MW Vientos del Altiplano parks.
All these facilities hold long-term power purchase agreements (PPAs). After the closing, Enel will retain a 20% interest in the facilities and will continue to operate the plants already in operation and those under construction under the framework of engineering, procurement and construction (EPC) contracts.
In Mexico, Enel will retain direct control of about 300 MW of operational capacity, namely the wind plants of Stipa Nayaa (74 MW), Zopiloapan (70 MW) and Sureste (102 MW), and the hydropower plants of El Gallo (30 MW), Chilatan (14 MW) and Trojes (9 MW), as well as the 134 kW solar plant COP 16.