Enel partnership sells 49 pc stake to GE for $440 mn

enel-gp-turbines

Italian multinational energy corporation Enel Green Power is selling its minority stake in a partnership holding to General Electric Company for $440 million.

The stake being sold amounts to 49 percent of the newly formed Enel Green Power North America (EGP-NA) Renewable Energy Partners, the company has stated.

EGP will retain 51 percent stake though EGP-NA.

EGP-NA has assets of 760 megawatts capacity, including a 200-megawatt wind farm being constructed in North America.

AS part of the sale of stakes, EGPNA will continue maintenance of the power plants, while GE’s investment unit will have the first option to invest in additional projects for three years.

Such partnership — known as yieldcos — provide growing companies with access to capital, and offer investors dividends through long-term contracts and steady returns.

Francesco Venturini, the chief executive officer of EGP, said in a statement that the partnership brings together two complementary companies with a common view on the future of renewables.

Enel Chief Executive Officer Francesco Starace, in turn, had said in February that the company would not seek to publicly list the yieldco.

Recently EGP-NA commenced construction on a 74MW wind project in Oklahoma, US.

The Little Elk wind farm being developed with an investment of about $130 million, is expected to be operational by the end of this year.

The farm is located in Kiowa and Washita counties and will produce about 330GWh of power annually.

EGP-NA is already in a 25-year power purchase agreement with People’s Electric Cooperative of Oklahoma (PEC) to supply electricity from the project.

EGP-NA is building 350MW wind projects in the state, including the 200MW Goodwell wind farm.

The partnership owns and operates 90 facilities in 21 US states and two Canadian provinces. They account for around 2,000MW of installed capacity.

Ajith Kumar S

[email protected]