Duke Energy to sell its commercial renewables business to Brookfield Renewables
Duke Energy reached an agreement to sell its unregulated utility scale Commercial Renewables business to Brookfield Renewable for approximately $2.8 billion.
Duke Energy expects to net about $1.1 billion from this deal and will utilize the proceeds to strengthen its balance sheet and avoid additional holding company debt issuances.
Further, it will allow the company to focus on the growth of its regulated businesses, including investments to enhance grid reliability and incorporate over 30,000 megawatts of 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,” Lynn Good, Duke Energy chair, president and CEO, said. “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 to Brookfield includes more than 3,400 megawatts of utility scale solar, wind, and battery storage across the United States, as well as operations, new project development, and current projects under construction. The primary operations of the Commercial Renewables business will remain in Charlotte, N.C., and Duke Energy employees that support the business will transition over to Brookfield to maintain business continuity for its operations and customers.
“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,” Connor Teskey, CEO of Brookfield Renewable, said. “We are also adding to our pipeline of renewable development projects, solidifying our position as one of the largest renewable energy businesses in the U.S. with almost 90,000 megawatts of operating and development assets.”
The sale, subject to regulatory approval by the Federal Energy Regulatory Commission and other closing conditions, is expected to close by the end of 2023.
Morgan Stanley and Wells Fargo Securities are serving as financial advisors to Duke Energy, while Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.
