Duke Energy Divests Utility-Scale Commercial Renewables Unit To Brookfield For $2.8B

Duke Energy Corporation DUK reached an agreement to sell its unregulated utility-scale Commercial Renewables business to Brookfield Renewable Partners L.P. BEP at an enterprise value of approximately $2.8 billion.

The agreement includes more than 3,400 megawatts (alternating current) of utility-scale solar, wind, and battery storage across the U.S., among others.

"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," said Lynn Good, Duke Energy chair, president, and CEO. 

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The company will have net proceeds of $1.1 billion, which will strengthen its balance sheet and avoid additional holding company debt issuances.

The deal value includes non-controlling tax equity interests and the assumption of debt.

Going ahead, Duke Energy will focus on the growth of its regulated businesses, including investments to enhance grid reliability.

The company plans to incorporate over 30,000 megawatts of regulated renewable energy into its system by 2035. 

The sale will close by the end of 2023. Duke Energy also noted a separate sale is underway for its distributed energy business, which is also expected to close by year-end 2023.

"We are also adding to our pipeline of renewable development projects, solidifying our position as one of the largest renewable energy businesses in the U.S. with almost 90,000 megawatts of operating and development assets," said Connor Teskey, CEO of Brookfield Renewable. 

Price Action: DUK shares are trading lower by 0.04% to $91.35 in the premarket session on the last check Tuesday.