Deal details: The acquisition involves four solar farms: Domeyko (204 MW), Carrera Pinto (97 MW), Pampa Solar Norte (79 MW), and Diego de Almagro (36 MW). These operational projects, located in Antofagasta and Atacama provinces, have entered into operation between 2014 and 2022. With a combined capacity of ~416 MW, the solar farms generate around 1 TWh of electricity. They have long-term power purchase agreements (PPAs) with Enel Generación Chile (formerly Endesa Chile) and supply electricity to Chile’s Central Region Transmission Network, Sistema Interconectado Central (SIC). Notably, previous reports suggested that Cubico was also part of the race to acquire the portfolio.
Transaction Rationale: The acquisition will enable Sonnedix to further strengthen its renewable energy footprint in the country. With ~700 MW of operational capacity and a renewable development pipeline of ~1.6 GW, Sonnedix is actively pursuing both organic and inorganic expansion strategies to grow its portfolio in the country. In line with this strategy, the company previously entered the wind market by acquiring ARCO, a renewable developer, in Oct’22.
For Enel, the move aligns with its strategic plan to streamline operations and focus on its core business of electricity generation and distribution. This strategy aims to reduce the company’s net debt to ~$52bn by the end of 2023. Further, Enel aims to divest another ~$22bn worth of assets between 2023 and 2025 as part of its reorganisation process. The company has already initiated this strategy by selling its Romanian unit to Greek utility PPC for $1.4bn in March 2022 and exiting its electricity transmission business in Chile to Sociedad Transmisora Metropolitana (STM) for $1.3bn in Dec’22.