Enel boosts its Development Strategy by signing an agreement with ORMAT Technologies Inc. for the sale of a portfolio of renewable assets in the United States. This transaction, with a total value of around 271 million US dollars, or approximately 255 million euros[1], will have a significant impact on the Group’s finances.
A Diversified Portfolio
This diversified portfolio includes around 150 megawatts of renewable energy capacity, from operating geothermal and solar power plants. This diversification of renewable energy sources demonstrates Enel’s determination to play a major role in the global energy transition by investing in clean, sustainable technologies.
Anticipated Financial Effects
According to forecasts, this operation should have a positive effect on the Enel Group’s consolidated net debt, with an increase of around 255 million euros. This will reinforce the company’s financial stability and support its future development projects. However, it is important to note that it could also have a negative impact of around €35 million on the Group’s reported EBITDA. Despite this negative impact, the Group’s ordinary business results should not be significantly affected.
A Step Towards Simplification
This transaction is perfectly in line with Enel’s asset rotation strategy. By selling these assets, Enel optimizes its portfolio to generate higher returns on invested capital. In addition, this operation contributes to the gradual simplification of the Group’s structure, in line with its strategic priorities. The simplified structure allows for better management of activities, reduced administrative costs and better allocation of resources for future development projects.
Impact on Enel’s Renewable Capacity in the United States
It is essential to stress that this transaction will have no impact on the Enel Group’s consolidated renewable capacity profile of 8 gigawatts in the United States. Enel Green Power North America[2] remains one of the largest producers of renewable energy in the region. With its core portfolio of wind, solar and storage farms, the company continues to play a leading role in the transition to clean, sustainable energy. Consolidating this capacity is a major asset for achieving our goals of energy sustainability and reducing greenhouse gas emissions.
Closing the transaction
Closing of the sale is expected in the coming months, subject to certain conditions precedent customary for this type of transaction. This includes approval from the relevant competition authorities. Once the transaction is finalized, Enel will be able to consolidate its finances, optimize its portfolio and pursue its commitment to the global energy transition.
In short, this transaction demonstrates Enel’s determination to play a leading role in the transition to clean, sustainable energy. The sale of these renewable assets in the United States will strengthen Enel’s position in the North American market and help simplify the Group’s structure. Although financial impacts are expected, the long-term benefits for the company and the environment are undeniable. The closing of this transaction will mark a new chapter in Enel’s ongoing commitment to energy sustainability.
This transaction underlines Enel’s position as a leader in the renewable energy sector and its determination to pursue strategic growth while maintaining a solid financial structure. It also reflects Enel’s vision of actively contributing to the global transition to clean, sustainable energy.
