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The deal is part of the Italian group’s strategy to reduce debt and simplify international operations.
Enel subsidiary Enel Green Power North America (EGPNA) has completed the sale of its renewable asset portfolio in the US to Ormat Technologies for $271m (€248.16m).
The transaction includes EGPNA’s entire geothermal portfolio as well as several small solar plants, cumulatively amounting to approximately 150MW of operating capacity.
The deal, which was first announced last year, is part of the Italian energy group’s strategy to reduce debt and simplify its international operations.
The sale is anticipated to positively influence Enel Group’s consolidated net debt by approximately €250m.
However, it is expected to have a negative impact of around €30m on the group’s reported net income.
However, the transaction is expected to have no impact on the group’s ordinary economic results.
Despite the sale, Enel’s renewable capacity in the US remains substantial, with more than 8GW of consolidated capacity.
As part of the agreement, Enel sold its 25MW Cove Fort geothermal power plant in Beaver County, Utah. The deal also covered the Salt Wells geothermal power plant in Churchill County, Nevada, with 65MW of capacity.
When the deal was first announced, Ormat Technologies CEO Doron Blachar said: “We are excited to announce this strategic acquisition, marking a significant milestone for Ormat as we expand our generating capacity portfolio and expand our footprint in the renewable energy sector.
“We are confident that this accretive acquisition, which carries approximately an 8 times EV/EBITDA [enterprise value to earnings before interest, taxes, depreciation and amortisation ratio] multiple (inclusive of the future planned enhancement and optimisation but excluding the Cove Fort expansion), will support both our short and long-term growth plans, further leveraging our unique core capabilities to maximise the efficiency and output from these power plants’ energy sources, strengthening our financial position, and delivering meaningful value to our investors.” |
