Enel Green Power offloads $1bn of Portuguese clean power assets

Enel Green Power (EGP), the clean energy subsidiary of Italian utility Enel, has sold $1 billion worth of renewable energy assets in Portugal to Portuguese investment firm First State Wind Energy Investments as it looks to streamline its operations and focus on faster-growing markets.

The sale will generate a capital gain for EGP of around $42 million while also easing some of its net debt position, which stands at more than $600 million. Focus is instead being shifted to the solar and wind energy markets of Africa and Latin America, and the company has earmarked some $10 billion in funding through to 2019 to help augment its presence in these regions.

A statement from EGP confirmed that the Portuguese sale is the first of a number of portfolio tweaks and disposals, with the strategy being to home-in on more energetic locations that offer the promise of higher returns.

Earlier this year EGP announced a $6 billion disposal plan that included the offloading of its Portuguese assets. "This disposal is part of our active portfolio management strategy, a key pillar of the group’s five-year strategic plan," said EGP CEO Francesco Venturini.

In September the company announced two ventures into the growing solar markets of Brazil and India, securing the right to develop 553 MW of solar PV capacity in the former (for a total investment of around $600 million)and acquiring a $33.5 million stake in Bharat Light & Power Pvt Ltd in India.

Domestically, Enel has also been active in Italy’s storage sector, building in September the country’s first large-scale battery facility at the 10 MW Catania 1 solar plant.