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Duke Energy has struck a deal to sell its unregulated Commercial Renewables business to Brookfield Renewable—a wind and solar power asset operator.
The deal is worth $2.8 billion but net proceeds will be a lot lower, at $1.1 billion. Duke will use the money to grow its other wind and solar business with plans to incorporate over 30 GW of regulated capacity into its system over the next 12 years, the company said in a news release.
"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,” the president and EO of Duke Energy, Lynn Good, said.
The CEO of Brookfield, for his part, commented that the deal would cement the company’s position as one of the biggest wind and solar operators in the country, with some 90 GW in operating and development assets.
Duke Energy reported a net loss for the first quarter of the year although revenues inched up by 3.8%. The revenue from regulated assets increased by 6.6%, the company said in May while revenue from unregulated assets declined.
The company is selling its unregulated operations to Brookfield Renewable. These total more than 3.4 GW in wind and solar power generation capacity and battery storage capacity.
Over the next five years, Duke Energy plans to invest some $65 billion to switch to a lower-carbon source of electricity, the company’s chief financial officer told Reuters earlier this month. The plans aim to help reduce the company’s carbon emissions by over 50% by 2030.
The company also aims to become a net-zero emitter in methane from its gas-powered energy generation assets by 2030, Duke also said.
As part of longer-term plans, Duke Energy eyes shutting down all of its coal power plants by 2035. By 2050, the company plans to have become fully net-zero in carbon emissions.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com