Enel sells Brazilian PV plants totaling 450 MW to China’s CGNEI

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Enel Green Power Brasil Participações Ltda – the Brazilian renewable energy unit of Italian energy giant Enel, has agreed to sell two solar plants with a combined capacity of 450 MW, plus a 90 MW wind farm, to Chinese investment holding company CGN Energy International Holdings.

The three operating facilities were sold for BRL2.9 billion ($776 million), Enel announced.

“With the sale of these assets, we are capturing value for further growth in Brazil, where we are implementing a large pipeline of renewable projects,” said Antonio Cammisecra, CEO of Enel Green Power. The transaction is expected to be finalized by the end of March.

One of the two solar plants is the 292 MW Nova Olinda project in Ribeira do Piauí, in the northeastern Brazilian state of Piauí, and was put into operation in September 2017. The project was awarded a 20-year PPA under Brazil’s August 2015 auction. The company invested approximately $300 million in the construction of Nova Olinda, with help from long-term financing by Banco do Nordeste.

Enel secured triple success

The second solar plant – the 158 MW Lapa project – is in the town of Lapa, in the northeastern state of Bahia, and was grid connected in June 2017. It consists of the Bom Jesus da Lapa (80 MW) and Lapa (78 MW) projects, which are also delivering power to the local grid under a 20-year PPA awarded in the same “Leilão de Reserva” auction of 2015.

In that procurement exercise, Enel was the largest winner with three solar projects totaling 553 MW. Overall, around 800 MW of solar capacity was assigned at a price of around $0.08/kWh. Together with the Lapa and Nova Olinda plants, Enel also secured a 20-year PPA for its 103 MW Horizonte MP scheme.

According to a recent report from Brazilian consultancy Greener, the auction of August 2015 was Brazil’s most successful tendering exercise, as it saw all the contracted capacity into operation, testing or under construction.