Charlotte-based Duke Energy is selling its utility-scale commercial renewables business to Brookfield Renewable in a deal valued at roughly $2.8 billion, which includes non-controlling tax interests and the assumption of debt.
Brookfield Renewable will acquire Duke Energy Renewables, a fully integrated developer and operator of renewable energy assets in the US with 5,900 megawatts (MW) of operating and under construction wind, solar and utility-scale storage assets, and a pipeline development of 6,100 MW that Brookfield Renewable is “well positioned to benefit from a highly supportive regulatory environment and growing demand for renewable energy from commercial and industrial buyers,” Brookfield Renewable said in a statement of press
The main operations of the business will remain in Charlotte, North Carolina, and Duke Energy employees who support the business will move to Brookfield to maintain business continuity for its operations and customers, according to the statement.
The sale, which is expected to close in late 2023, is subject to customary closing conditions, including regulatory approval from the Federal Energy Regulatory Commission and expiration of the Hart Act waiting period- Scott-Rodino.
Duke Energy’s expected net proceeds from this transaction are approximately $1.1 billion, subject to certain customary adjustments. The company said it will use the proceeds to strengthen its balance sheet and avoid additional holding company debt issuance, allowing the company to focus on growing its regulated businesses, including investments to improve grid reliability and help incorporate more than 30,000 MW of regulated renewable energy. into your system in 2035.
“As one of the nation’s largest renewable energy operators, Brookfield has the resources to support the continued growth and success of the commercial renewables portfolio,” said Lynn Good, chairman, president and CEO of Duke Energy. “This sale is an important step in our transition to a purely regulated company with significant grid and clean energy investment plans that will deliver benefits to our customers and stakeholders.”
“With this acquisition, we are adding an operational renewable platform at scale with a comprehensive set of in-house capabilities and a proven management team with operations and development experience,” said Connor Teskey, CEO of Brookfield Renewable. “We are also adding to our portfolio of renewable development projects, solidifying our position as one of the largest renewable energy companies in the US with nearly 90,000 megawatts of operating and development assets.”
Meanwhile, Duke Energy said it also continues to make good progress on a separate sale underway for its distributed power business, which is also expected to close by the end of 2023.
According to the company’s website, Duke Energy’s electric businesses serve 8.2 million customers, while its natural gas unit serves 1.6 million customers in the US. The company is executing an “aggressive clean energy transition” to achieve its goals of net zero methane emissions from its natural gas business by 2030 and zero net carbon emissions from electricity generation by 2050. A In addition, the company is investing in significant grid improvements and energy storage and exploration of emission-free power generation technologies such as hydrogen and advanced nuclear.
Brookfield Renewable is the flagship renewable energy company of Brookfield Corporation, a global alternative asset manager with more than $825 billion of assets under management. The company says it operates one of the world’s largest pure-play renewable energy platforms, with utility-scale hydro, wind, solar and storage facilities in North America, South America , Europe and Asia. Its portfolio totals approximately 31,600 MW of installed capacity and includes a development portfolio with approximately 131,900 MW of renewable energy assets.
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