Enel sells a 150 MW renewable asset portfolio in the US to ORMAT for $271 million, approximately €250 million. The deal impacts Enel's net debt positively by about €250 million but negatively affects reported net income by around €30 million. The transaction doesn't alter Enel's 8 GW+ renewable capacity in the US, maintaining Enel Green Power North America's prominent position.
Enel, via its subsidiary Enel Green Power North America Inc. (EGPNA), has concluded an agreement with ORMAT Technologies Inc. to divest a US-based renewable asset portfolio for $271 million, roughly €250 million at the current exchange rate. The sold assets encompass EGPNA's complete geothermal portfolio and several small-scale solar plants, collectively boasting an operational capacity of approximately 150 MW.
This transaction, post-fulfillment of specified conditions, is expected to significantly impact the Enel Group's consolidated net debt, with a positive effect of about €250 million. However, it will lead to a negative impact of roughly €30 million on the Group's reported net income. Importantly, this sale won't affect the Group's ordinary economic outcomes.
It's crucial to note that despite this divestment, Enel's renewable consolidated capacity in the United States remains unchanged, surpassing 8 GW. This reaffirms Enel Green Power North America's stature as a prominent producer of renewable energy in the region, leveraging its core technology portfolio.
The deal's financial impact reflects a favorable adjustment in Enel's debt profile, aligning with its strategic objectives. While this transaction marks a shift in asset ownership, Enel remains a significant player in the US renewable energy landscape, continuing its substantial contribution to the region's sustainable energy sector.
Enel's sale of a portion of its US-based renewable asset portfolio to ORMAT for €250 million underscores a strategic financial move that positively influences its consolidated net debt. Despite the divestment, Enel retains its stature as a leading renewable energy producer in the United States, emphasizing its commitment to sustainability and ongoing contributions to the region's green energy goals.