Duke Energy to sell commercial renewables business for US$2.8 billion
Published by Jessica Casey,
Editor
Energy Global,
Duke Energy today announced it has reached an agreement to sell its unregulated utility scale commercial renewables business to Brookfield Renewable, one of the world's largest owners and operators of renewable power and climate transition assets, at an enterprise value of approximately US$2.8 billion, including non-controlling tax equity interests and the assumption of debt.
Duke Energy’s expected net proceeds from this transaction are approximately US$1.1 billion, subject to certain customary adjustments. Duke Energy will utilise the proceeds to strengthen its balance sheet and avoid additional holding company debt issuances. This will allow the company to focus on the growth of its regulated businesses, including investments to enhance grid reliability and help incorporate over 30 000 MW of regulated renewable energy into its system by 2035.
“As one of the country’s largest renewable energy operators, Brookfield has the resources to support the continued growth and success of the commercial renewables’ portfolio,” said Lynn Good, Duke Energy Chair, President and CEO. “This sale is an important step in our transition into a purely regulated company with significant grid and clean energy investment plans that will deliver benefits to our customers and stakeholders.”
The sale agreement for the commercial renewables business platform includes more than 3400 MW (alternating current) of utility scale solar, wind and battery storage across the US, net of joint venture partners ownership, in addition to operations, new project development, and current projects under construction. The primary operations of the commercial renewables business will remain in Charlotte, North Carolina.
“With this acquisition, we are adding a scale operating renewable platform with a full suite of in-house capabilities and a proven management team experienced in operations and development,” commented Connor Teskey, CEO of Brookfield Renewable. “We are also adding to our pipeline of renewable development projects, solidifying our position as one of the largest renewable energy businesses in the US with almost 90 000 MW of operating and development assets.”
The sale is subject to satisfaction of customary closing conditions, including regulatory approval by the Federal Energy Regulatory Commission and the expiration of the waiting period under the Hart-Scott-Rodino Act. The sale is expected to close by the end of 2023.
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Read the article online at: https://www.energyglobal.com/other-renewables/14062023/duke-energy-to-sell-commercial-renewables-business-for-us28-billion/
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