Enel Divests Stake In 1.8 GW Mexico Projects

Enel Green Power Sells Majority Stake In 1.8 GW Renewable Energy Capacity In Mexico To CDPQ & CKD IM; Will Continue To Operate Plants
03:19 PM (Beijing Time) - 02. October 2018
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Enel Green Power (EGP) has divested its majority stake in its 8 special purpose vehicles (SPVs) in Mexico, selling 80% shares in a total of 1.8 GW capacity. As per the deal between CDPQ and CKD IM, Enel will continue to hold 20% stake in the 8 SPVs. Pictured is Enel’s Pampa Norte solar power plant in Chile. (Photo Credit: Enel Green Power)

Key Takeaways

  • Enel Green Power has sold its majority stake in 1.8 GW renewable energy capacity in Mexico to CDPQ and CKD IM
  • Under the deal, it has secured $1.4 billion of which Enel will be able to reduce its consolidated net debt by about $2.4 billion
  • The plants include 1.1 GW solar power capacity it recently commissioned in the form of 828 MW Villanueva I and III along with 260 MW Don José solar power plants
  • EGP will continue to operate the plants and will also have the option to add more projects to the SPVs, beginning January 1, 2020

Enel Green Power (EGP) has divested its majority stake in its 8 special purpose vehicles (SPVs) in Mexico, selling 80% shares in a total of 1.8 GW capacity. In the process, it has earned $1.4 billion from the buyers, institutional investor Caisse de dépot et placement du Québec (CDPQ), and the Mexican pension fund CKD Infraestructura México S.A. de C.V. (CKD IM).

The 8 SPVs own 8 plants of which some 700 MW is in the wind power domain, while the remaining 1.1 GW solar power capacity comprise the 469 MW Villanueva I, 359 MW Villanueva III and 260 MW Don José solar power plants (see Enel Completes 1 GW PV Grid Connection In Mexico).

Through the sale, EGP holds 20% and CDPQ 40.8% share in the SPVs through a newly formed holding company, Kino Holding, and the CKD IM holds 39.2% stake in these companies through newly formed sub-holdings, Mini HoldCos. Enel will continue to operate the plants and complete the under construction plants under the build-sell-operate (BSO) model.

According to the terms of the deal, the renewable energy arm of the Italian company Enel S.p.A. has the option of adding more projects to the SPVs and becoming their majority shareholder, staring January 1, 2020.

With the money, Enel will be able to reduce its consolidated net debt by about $2.4 billion.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani