Duke Energy Announces Buyer, Sale Price For Commercial Distributed Generation Business
July 5, 2023 Email This Story Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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Duke Energy today announced that it has reached an agreement to sell its commercial distributed generation business to an affiliate of ArcLight Capital Partners, LLC (collectively, "ArcLight") for an enterprise value of $364 million, inclusive of non-controlling tax equity interests.
Duke Energy said that it expects approximately $259 million of proceeds from this transaction, which is subject to certain customary adjustments and will be received upon closing.
As previously reported, in early June, Duke Energy reached a sale agreement for its utility-scale renewables business platform. The company expects to finalize the sales for its utility-scale and distributed generation businesses by the end of 2023 and will utilize the proceeds, "to strengthen its balance sheet and avoid additional holding company debt issuances associated with these assets."
"These transactions will support Duke Energy's focus on the growth of its regulated businesses, including investments to enhance grid reliability and help incorporate over 30,000 megawatts of regulated renewable energy onto its system by 2035," Duke said
The distributed generation business being sold includes REC Solar operating assets, development pipeline and O&M portfolio, as well as distributed fuel cell projects managed by Bloom Energy. Employees of the distributed generation business will transition to ArcLight to maintain business continuity for its operations and customers, Duke said