Duke Energy to sell Commercial Renewables unit to Brookfield Renewable for $2.8B

Duke Energy (DUK) announced it has reached an agreement to sell its unregulated utility scale Commercial Renewables business to Brookfield Renewable (BEP) at an enterprise value of approximately $2.8B, including non-controlling tax equity interests and the assumption of debt. Duke Energy’s expected net proceeds from this transaction are approximately $1.1B, subject to certain customary adjustments. Duke Energy 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 megawatts of regulated renewable energy into its system by 2035. 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 sale is expected to close by the end of 2023. Duke Energy also continues to make strong progress on a separate sale underway for its distributed energy business, which is also expected to close by year-end 2023.