Enel sells 80% stake in Mexican renewable portfolio 🔓

Italian utility Enel agreed Monday to sell a majority stake in 1.7 gigawatts (GW) of renewable capacity in Mexico to Canada’s institutional investor Caisse de dépot et placement du Québec (CDPQ) and Mexican pension funds CKD Infastructura México (CKD IM).

The $1.35 billion transaction consists of a sale of 80% of the share capital of the newly formed Mexican holding company, Holdco – which owns eight special purpose vehicles (SPVs). These SPVs are currently owned by Enel Green Power (EGP).

If the deal receives regulatory approval, CDPQ and CKD IM will own three operating plants and five more under construction. The assets, which have long-term power purchase agreements (PPA) in place, consist of 1GW of solar plants and 0.7 GW of wind farms, Kallanish Energy learns.

“This agreement is a further step into the BSO (Build, Sell and Operate) model that, combined with EGP consolidated investments, will foster the growth of our renewables footprint” said Antonio Cammisecra, head of Enel Green Power.

EGP will build, sell and operate the 1.7 GW of capacity, but CDPQ and CKD IM will own it. The BSO model enables Enel to capitalize the pipeline of renewables projects more quickly, reducing overall risk and accelerating value creation.

“By attracting solid long-term partners in this transaction, EGP confirms the strategic role that Mexico plays in its global presence,” added Cammisecra. “We’re enthusiastic about the opportunities offered by the Mexican renewables market, and it is our intention to continue to invest in the country where EGP will play an active role by managing operating assets and developing new initiatives.”

The sale is expected to be completed by the end of the year, after which Enel will retain direct control of 300 megawatts (MW) of installed capacity – wind farms, a hydroelectric plant and a solar plant.

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