Duke Energy (NYSE: DUK) has reached an agreement to sell its utility-scale commercial renewables business to Brookfield Renewable Partners LP (“Brookfield Renewable”) (NYSE: BEP; TSX: BEP.UN) for an enterprise value of approximately $2.8 billion, including non-controlling tax equity interests and the assumption of debt.

The sale includes Duke Energy Renewables’ portfolio of 5,900 megawatts (MW) of operating and under construction wind, utility-scale solar and storage assets, and a 6,100-MW development pipeline. The primary operations of the business will remain in Charlotte, North Carolina and the Duke Energy employees that support the business will transition over to Brookfield to maintain business continuity for its operations and customers.

The deal is part of Duke Energy’s strategy to transition into a purely regulated company with significant grid and clean energy investment plans that will deliver benefits to its customers and stakeholders. The company said it will utilize the proceeds from the sale to strengthen its balance sheet and avoid additional holding company debt issuances, allowing the company to focus on the growth of its regulated businesses, including investments to enhance grid reliability and help incorporate over 30,000 MW of regulated renewable energy into its system by 2035.

Brookfield Renewable, one of the country’s largest renewable energy operators, said the acquisition will add a scale operating renewable platform with a full suite of in-house capabilities and a proven management team experienced in operations and development. The company also said it will expand its pipeline of renewable development projects, solidifying its position as one of the largest renewable energy businesses in the U.S. with almost 90,000 megawatts of operating and development assets.

The sale is expected to close by the end of 2023, subject to 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.

Duke Energy also said it 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.

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