Enel S.p.A., through its U.S.-based renewables subsidiary Enel Green Power North America (EGPNA), has signed a letter agreement with GE Energy Financial Services in which EGPNA would sell a 1% stake in EGPNA Renewable Energy Partners LLC (EGPNA REP) to GE to create a 50/50 joint venture
The partnership in EGPNA REP was launched in March 2015 as a mechanism to actively manage the Enel Group’s renewables portfolio in North America.
Following the transaction, EGPNA will reduce its stake in EGPNA REP to 50% from the current 51% and GE Energy Financial Services will increase its stake to 50% from its current 49%. The two companies also intend to revise their partnership LLC (Limited Liability Company) agreement, converting EGPNA REP into an equally owned joint venture.
“As the leading utility globally in renewable energy, expanding our relationship with GE Energy Financial Services, themselves a leader as a global energy investor, strengthens our position in the North American market with a long-standing partner,” said Francesco Venturini, Enel’s Head of Global Renewable Energies.
He added: “The de-consolidation of these assets reduces our capital intensity, decreases our risk profile and supports our ability to accelerate investment in the large pipeline of opportunities globally.”
The new rules of corporate governance in the revised partnership LLC agreement provide that EGPNA will continue to manage EGPNA REP assets. The transaction, which is subject to all required regulatory approvals, is expected to be closed in December 2016, at which time funding will occur.
Upon completion of the transaction, the Enel Group will de-consolidate EGPNA REP’s debt (approximately 500 million U.S. dollars) and capacity. The partnership in EGPNA REP was launched in March 2015 as a mechanism to actively manage the Group’s renewables portfolio in North America.
Currently EGPNA REP’s assets include 46 wind, geothermal, hydropower, and solar plants with around 1,200 MW of installed capacity.
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