Duke Energy, a Fortune 150 company and one of America's largest energy holding companies, announced it has reached an agreement to sell its unregulated utility-scale Commercial Renewables business to global renewable energy company Brookfield Renewable (Brookfield) at an enterprise value of approximately $2.8 billion, including non-controlling tax equity interests and the assumption of debt.
This agreement for the Commercial Renewables business encompasses over 3,400 MWac of utility-scale solar, wind, and battery storage across the U.S. after taking into account joint venture partners' ownership, which involves a vast collection of projects not only includes operational facilities but also projects in the pipeline, as well as those under construction.
"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," said Lynn Good, chair, president and CEO of Duke Energy.
Duke Energy's expected net proceeds from this transaction are approximately $1.1 billion but may be subject to certain customary adjustments.
The company 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, including investments to enhance grid reliability and help incorporate over 30,000 MW of regulated renewable energy into its system by 2035.
"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," said Connor Teskey, CEO of Brookfield Renewable.
Teskey also said that this project pipeline expansion further cements their status as a dominant player in the U.S. renewable energy sector, with an impressive portfolio that boasts nearly 90,000 MW of operating and development assets.
The sale is subject to satisfaction of customary closing conditions, including regulatory approval by the Federal Energy Regulatory Commission and the expiration of the waiting period under the Hart-Scott-Rodino Act.
The primary operations of the acquired business will remain in Charlotte, North Carolina. The employees who supported the business at Duke Energy will now work for Brookfield to ensure that operations and customer service remain uninterrupted.