Duke Energy To Sell Commercial Renewables Business For $2.8 Billion, Buyer Named
June 12, 2023 Email This Story Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Duke Energy today announced it has reached an agreement to sell its unregulated utility scale Commercial Renewables business to Brookfield Renewable ("Brookfield") at an enterprise value of approximately $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 $1.1 billion, subject to certain customary adjustments. Duke Energy will utilize 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, the company said
The sale agreement for the Commercial Renewables business platform includes more than 3,400 megawatts (alternating current) of utility scale solar, wind and battery storage across the U.S., 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, N.C. and the Duke Energy employees that support the business will transition over to Brookfield to maintain business continuity for its operations and customers.
The sale is expected to close by the end of 2023.
Duke Energy said that it also continues to make strong progress on a separate sale underway for its distributed energy business, which is also expected to close by year-end 2023.