Neoen to divest 22-MWp solar plant duo in France

France’s Neoen SA (EPA:NEOEN) has agreed to offload its entire interest in two operational solar power plants in its home market totalling 21.7 MWp for nearly EUR 29 million (USD 32.8m).

The renewable power producer said on Wednesday that this will be its second farm-down transaction in France. The deal will see it transfer the ownership of the Lugos and Miremont solar parks to an unnamed buyer.

Neoen expects to get a net capital gain from the sale of around EUR 9 million, which will add to its 2021 earnings before interest, tax, depreciation and amortisation (EBITDA).

The Lugos park in the Gironde department and the Miremont plant in Haute-Garonne have been generating power since June 2018 and July 2019, respectively. The assets hold power purchase agreements (PPAs) through 2038 and 2039.

This deal is expected to be completed by end-2021. Neoen noted that it plans to conduct a third farm-down transaction before the end of the year.

(EUR 1.0 = USD 1.131)

Choose your newsletter by Renewables Now. Join for free!