Latin American conglomerate Enel Americas SA (BCS:ENELAM), part of Italian utility group Enel SpA (BIT:ENEL), has signed agreements to sell two thermal power plants in Argentina in a USD-102-million (EUR 95.4m) deal as part of wider plans to withdraw from all but core countries on the continent.
Enel Americas said on Friday that it is selling its 75.7% stake in thermal power generation entity Enel Generacion Costanera and a 41.2% stake in Central Dock Sud to Argentine power producer Central Puerto SA (BCBA:CEPU). The sale is carried out via Enel Argentina.
Central Puerto, through its unit Proener, will pay USD 48 million for the stake in Costanera and USD 54 million for interests in Inversora Dock Sud and Central Dock Sud, according to the company's SEC filings.
The agreement for the Dock Sud interests is subject to certain conditions and is expected to close in the first quarter of 2023, Enel Americas said.
"These are operations that are in line with our decarbonization strategy implemented to reach zero emissions by 2040," Enel Americas CEO Maurizio Bezzeccheri said in a statement.
Enel Generacion Costanera is Argentina’s largest thermal power generator, with an original installed capacity of 2,305 MW. Central Dock Sud, which is controlled by Inversora Dock Sud, owns and operates a gas-fired power plant with an installed capacity of 870 MW.
Enel Argentina also operates the 1,328-MW El Chocon hydropower plant, a distribution business in Greater Buenos Aires and provides a range of energy and electric mobility services through Enel X and Enel X Way brands.
The Argentina sale is in line with the Enel Group’s 2023-2025 strategy to exit all non-core markets around the world and sell EUR 21 billion (USD 22.4bn) worth of assets to narrow it debt. The asset disposal plan for Enel Americas will see the company leave Argentina and Peru and reduce operations in Brazil.
The bulk of Enel Americas’ investments will be concentrated in Brazil and Colombia. Through Enel Colombia, the group also reaches Guatemala, Panama and Costa Rica.
Enel Americas’ generation fleet in Latin America is 71% renewables -- wind, solar and hydro. The sale of thermal capacity is expected to lead to a 98% renewables share in the generation portfolio by the end of the 2023-2025 period.
(USD 1.0 = EUR 0.936)
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Costanera thermal power plant in Buenos Aires, Argentina. Image source: Enel Americas (www.enelamericas.com)
