Duke Energy finds buyer for its commercial-scale renewables business

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After agreeing to sell its utility renewable energy business to Brookfield, Duke has now found a buyer for its distributed generation business and will exit solar and wind program development and wholly own it. ArcLight Capital Partners, a middle-market infrastructure investor, will buy the DG business for $364 million, including non-controlling tax equity. Duke Energy expects approximately $259 million in proceeds from this transaction, subject to certain customary adjustments, to be realized upon closing.

“The sale of our commercial renewable energy businesses simplifies our portfolio and provides resources to support the long-term needs of our customers in our growing regulated territories,” said Lynn Good, Duke Energy chairman, president and CEO. “Over the next decade, we plan to invest significant capital to fund the critical energy infrastructure needed to serve our customers and support our transition to clean energy.”

The distributed generation business being sold includes the REC Solar/Duke Energy Sustainable Solutions 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.

“Our investment in Duke Energy’s commercial distributed generation business supports ArcLight’s long-standing strategy of acquiring operational assets from leading strategic programs and building robust self-renewable platforms. We believe this is an attractive opportunity to acquire a first-class commercial distributed generation portfolio, partner with a talented team and build long-term, high-quality customer relationships,” said ArcLight CEO Marco Gatti.

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