Italy-headquartered Enel, along with its Chilean subsidiary, has recently entered into an agreement to sell a 416 MW portfolio of solar photovoltaic power projects in Chile to Sonnedix, a renewable energy producer, for $550 million.

These projects are owned by Arcadia Generacion Solar.

The portfolio includes the following solar photovoltaic projects, Diego de Almagro (36 MW), Carrera Pinto (97 MW), Pampa Solar Norte (79 MW), and Domeyko (204 MW). Together, these projects generate an estimated net energy of 1 TWh/year.

Enel expects the transaction to reduce its debt by approximately  €504 million ($560.9 million) and contribute around €20 million (~$22.2 million) to its net income in 2023.

The strategic move will help Enel optimize its asset base and improve its risk-return profile. Sonnedix, an international renewable energy producer, aims to expand its sustainable electricity portfolio by acquiring these equity interests.

Enel is a prominent player in Chile’s renewable energy market through its subsidiary Enel Chile. The company boasts a diversified portfolio that includes wind, solar, hydroelectric, and geothermal projects.

Sonnedix, an international renewable energy producer, has experience developing, building, and operating sustainable electricity projects. The company has a total capacity of over 9 GW and a development pipeline of over 6 GW across various countries, including Chile, France, Germany, Italy, Japan, Poland, Portugal, Spain, the USA, and the UK.

Recently Enel North America announced, through its affiliate 3Sun USA, it will construct a 3 GW large-scale solar module manufacturing facility in Oklahoma. Estimated to cost over $1 billion, the planned factory is claimed to be among the first in the U.S. to produce solar cells incorporating bifacial heterojunction technology.

Last August, Enel reached an agreement with the Norwegian Climate Investment Fund and Norway’s largest pension fund, KLP. The agreement involved the acquisition of a 49% stake in Enel’s Thar Surya 1 solar power project in India. The project has a capacity of 420 MW and is estimated to cost approximately ₹2.8 billion (~$33.8 million).