January 17 (Renewables Now) - Italian utility Enel SpA (BIT:ENEL) announced on Wednesday it is selling 540 MW of Brazilian renewable energy plants to Chinese company CGN Energy International Holdings Co Ltd.
The deal, made through local renewable subsidiary Enel Green Power Brasil Participacoes Ltda, is valued at approximately BRL 2.9 billion (USD 776m/EUR 681m). It includes the sale of two solar plants and one wind farm.
More specifically, Enel is relinquish the rights to the 292-MW Nova Olinda and the 158-MW Lapa photovoltaic (PV) plants, located in Piaui and Bahia state, respectively. In regards to the wind farm, the company is soelling the 90-MW Cristalandia facility, also based in Bahia.
The three renewable energy assets are all operational with 20-year power purchase agreements (PPAs) each. The Italian firm will also continue to provide operation and maintenance (O&M) services to the assets.
"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,” stated Antonio Cammisecra, Head of Enel Green Power.
The closing of this transaction is expected to happen by the end of the first quarter of 2019, pending certain precedent conditions, including approval by Brazilian antitrust authorities.
(BRL 1 = USD 0.27/EUR 0.23)