Duke Energy has agreed to sell its utility renewable energy business to Brookfield Renewable for $2.8 billion. Duke will now focus on its utility business, including investments to improve grid reliability.
“As one of the nation’s largest renewable energy operators, Brookfield has the resources to support the continued growth and success of the Commercial Renewable Energy portfolio,” said Duke Energy chairman, president and CEO Lynn Good. “This sale is an important step in our transition to a net regulated company with significant grid and clean energy investment plans that will benefit our customers and stakeholders.”
The contract for the sale of Duke’s Commercial Renewables business platform includes more than 3,400 MW.AC: Utility-scale solar, wind and battery storage in the United States, net of ownership of the joint venture partners, in addition to operations, new project development and current projects under construction. The primary operations of this business will remain in Charlotte, North Carolina, and Duke Energy employees supporting the business will relocate to Brookfield to maintain its operations and business continuity for customers.
“With this acquisition, we add a large-scale operating renewable platform with a full suite of in-house capabilities and a proven management team experienced in operations and development,” said Conor Tesky, CEO of Brookfield Renewable. “We are also increasing our renewable energy development projects, strengthening our position as one of the largest renewable energy businesses in the US with nearly 90,000 MW of operating and development assets.”
The sale is subject to customary closing conditions, including regulatory approval by the Federal Energy Regulatory Commission and expiration of a waiting period under the Hart-Scott-Rodino Act. The sale is expected to close by the end of 2023. Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are serving as financial advisors to Duke Energy for this transaction. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to Duke Energy.
Duke Energy also continues to make strong progress on a stand-alone sale for its distributed energy business, which is also expected to close by the end of 2023.
Last year, Brookfield completed the acquisition of renewable energy developers Standard Solar and Scout Clean Energy.
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