Duke Energy is selling its unregulated utility-scale commercial renewables business to Brookfield Renewable in a deal valued at nearly $2.8 billion.
The sale agreement includes more than 3.4 gigawatts of solar, wind, and battery storage capacity across the United States, joint venture partnerships, and current projects under construction. Duke Energy said it is in part selling the business to focus on the growth of its regulated businesses, including investments to enhance grid reliability and to help incorporate more than 30 GW of regulated renewable energy into its system by 2035.
Brookfield operates one of the largest publicly traded renewable power platforms, which includes hydroelectric, wind, solar, and battery storage facilities in North America, South Africa, Europe, and Asia. The company has nearly 31.6 GW of installed capacity and is developing some 132 GW more.
The deal will enhance Brookfield’s operations, the company said, by adding a proven renewable energy platform. It also strengthens the company as one of the largest renewable energy providers in the U.S., with almost 90 GW of operating and development assets, CEO Connor Teskey said.
Duke Energy said it expects to net approximately $1.1 billion from the sale, which is subject to adjustments. The primary operations of the commercial renewables business will remain in Charlotte, North Carolina, and current Duke employees working for the unit will transition to Brookfield to help maintain business continuity, the companies said.
Reuters reported that Duke Energy initiated the sale for the commercial renewables business in November 2022, and is planning to spend $65 billion over the next five years, most of that on clean energy transitions. Duke Energy, which owns more than 50 GW of energy capacity, has 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky.
"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,” Duke Energy President and CEO Lynn Good said.
The sale is expected to close by the end of 2023 and is subject to customary closing conditions including approval by the Federal Energy Regulatory Commission and the expiration of the waiting period under the Hart-Scott-Rodino Act. Morgan Stanley and Wells Fargo Securities are serving as financial advisors to Duke Energy for the transaction, and Skadden, Arps, Slate, Meagher & Flom is serving as legal counsel, the company said.