Enel S.p.A., through its U.S.-based renewables subsidiary Enel Green Power North America (EGPNA), has signed and closed an agreement with GE Energy Financial Services. The transaction was closed following a letter agreement signed in November 2016 between EGPNA and GE Energy Financial Services and the completion of all required regulatory approvals.
The two companies have revised their Limited Liability Company agreement, converting EGPNA REP into an equally owned joint venture.
Under the agreement EGPNA has sold a 1% stake in EGPNA Renewable Energy Partners (EGPNA REP) to GE Energy Financial Services, for about U.S.$10 million. As a result of the transaction, EGPNA has reduced its stake in EGPNA REP to 50% from 51%, and GE Energy Financial Services increased its stake to 50% from 49%.
“This transaction reinforces the key pillars of Enel’s global growth strategy, while also strengthening our position in the North American market,” said Francesco Venturini, Enel’s Head of Global Renewable Energies.
“Through the joint venture we’ve just created, the U.S. has become the first country where we are carrying out our new industrial growth strategy driven by a less capital intensive ‘Build, Sell and Operate’ model, which will ultimately help us accelerate the development of our large global pipeline,” added Venturini.
The new corporate governance rules of the LLC agreement provide that EGPNA will continue to manage EGPNA REP assets. With the completion of the transaction, Enel de-consolidated EGPNA REP’s debt (approximately U.S.$500 million) and capacity.
EGPNA REP was launched in March 2015 to actively manage a part of 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. The company is present in 23 U.S. states and two Canadian provinces.
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