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  • Writer's pictureShernel Thielman

Brookfield Renewable buys Duke Energy's commercial renewables unit in $1.1B deal

**Disclaimer: The following blog post is for informational purposes only and should not be considered financial or investment advice. The content provided is based on information available at the time of writing (June 12, 2023). Please conduct thorough research and consult with a professional financial advisor before making any investment decisions.**


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In an exciting move within the renewable energy sector, Brookfield Renewable Partners has announced its agreement to acquire Duke Energy's unregulated utility scale commercial renewables business for a substantial sum of $1.05 billion. This strategic acquisition positions Brookfield Renewable as one of the largest renewable energy platforms in the United States, providing access to over 3,400 MW of utility scale solar, wind, and battery storage assets across the country. Additionally, the deal includes a 6,100 MW development pipeline that is poised to capitalize on the favorable regulatory landscape and the growing demand for renewable energy from commercial and industrial customers.


The acquisition is expected to have an immediate positive impact on Brookfield Renewable's funds from operations, bolstered by strong cash flow visibility. Approximately 90% of the acquired assets' cash flows are contracted, with a weighted average remaining life of 13 years, backed by reliable investment-grade counterparties. This stability and predictability of cash flows further enhance the attractiveness of this deal for Brookfield Renewable.


Duke Energy's Chair, President, and CEO, Lynn Good, emphasized that the sale represents an important step in their strategic transition toward becoming a purely regulated company. Duke Energy aims to focus its efforts on grid infrastructure and clean energy investments that will generate substantial benefits for its customers and stakeholders.


To support the financing of the acquisition, Brookfield Renewable intends to launch a bought deal and concurrent private placement, raising a total of $650 million in equity proceeds. The bought deal offerings will consist of a combination of limited partnership units and class A exchangeable subordinate voting shares, with specific details to be determined by the underwriters.


Brookfield Renewable's acquisition of Duke Energy's commercial renewables unit not only solidifies its position as a major player in the renewable energy sector but also reflects the growing interest and investment in clean energy solutions. As the world increasingly recognizes the importance of transitioning to sustainable energy sources, partnerships and acquisitions like these play a pivotal role in driving the industry forward.


It is important to note that the information provided in this blog post is based on publicly available information and is subject to change. Investors and readers are advised to conduct their own research and consult with a professional financial advisor before making any investment decisions. The financial markets can be volatile, and individual circumstances may vary.

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