13 Jun 2023
Brookfield Renewable to acquire Duke Energy’s Commercial Renewables unit for $3.7 billion
On June 13, 2023, Duke Energy Corp announced its agreement to sell its unregulated Commercial Renewables business to Brookfield Renewable for approximately CAN$3.7 billion ($2.8 billion). Duke anticipated net proceeds of around CAN$1.5 billion ($1.1 billion) from this sale. The company intends to use these proceeds to integrate over 30,000 megawatts of regulated renewable energy by 2035, bolster its balance sheet, circumvent further debt, and enhance grid reliability. The sale aligns with the broader U.S. electric utilities' transition from fossil fuels to greener energy sources to achieve climate objectives. Duke revealed plans to invest CAN$ 89.2 billion ($65 billion) in the upcoming five years, predominantly for transitioning to low-carbon energy. The company aims to cut its carbon emissions by over 50% by 2030, shut down all its coal plants by 2035, and target net-zero carbon emissions by 2050. The sale to Brookfield Renewable encompasses over 3,400 megawatts of utility-scale solar, wind, and battery storage across the U.S., including operations, new project development, and ongoing construction projects. The transaction is projected to finalize by the end of 2023. Duke's financial advisors for the deal were Morgan Stanley & Co LLC and Wells Fargo Securities LLC, while Skadden, Arps, Slate, Meagher & Flom LLP acted as the legal counsel.
