Enel, Italy’s largest utility, has completed the sale of its renewable asset portfolio in the United States to Ormat Technologies for $271 million.
The move is aimed at strategically reducing the company’s debt and streamlining its international operations, Enel announced on Thursday.
This deal, which was initially disclosed last year, forms a pivotal part of Enel’s overarching strategy to optimize its financial position and focus its operational footprint.
The agreement encompasses the entirety of Enel’s geothermal portfolio in the United States, coupled with several smaller solar plants, boasting a combined capacity of 150 megawatts (MW).
According to a statement released by the group, this transaction is anticipated to deliver a positive impact of approximately 250 million euros ($274 million) on Enel’s consolidated net debt. However, it is expected to marginally affect the reported net income of the group, with an estimated decrease of around 30 million euros. Enel clarified that this move will not influence the utility’s regular economic performance.
Post this divestiture, Enel’s renewable consolidated capacity in North America stands at approximately 9.7 gigawatts (GW).
In November, during the unveiling of the updated group strategy, Enel’s new CEO, Flavio Cattaneo, outlined the company’s shift in priorities. Cattaneo disclosed the abandonment of plans to establish an extensive network of electric car charging points. However, the company remains committed to exploring the establishment of a solar panel factory in the United States, in collaboration with a local partner.
Cattaneo highlighted the group’s assessment of potential partnerships that could leverage the Biden administration’s support for ventures aligned with energy transition objectives.
Previously, under the guidance of its former CEO, Enel had articulated plans to establish a solar cell and panel manufacturing facility in Oklahoma, adjacent to Tulsa, with an annual production capacity of 3 gigawatts. The timeline projected the commencement of panel production by the conclusion of 2024.