Utility Scale

Duke Energy completes sale of commercial distribution generation portfolio to ArcLight

Duke Energy completes sale of commercial distribution generation portfolio to ArcLight
West Hawaii Civic Center (Credit: Duke Energy)

Duke Energy announced it has completed the sale of its commercial distributed generation portfolio to an investment fund managed by ArcLight Capital Partners, LLC, a middle-market infrastructure investment firm.

The sale agreement, which was previously announced on July 5, 2023, includes REC Solar’s operating assets, development pipeline, and O&M portfolio, as well as distributed fuel cell projects managed by Bloom Energy.

ArcLight’s acquisition of the distributed generation business further expands the firm’s focus on developing strong standalone renewable platforms across the infrastructure sector. Employees of the distributed generation business will transition to ArcLight to maintain business continuity for its operations and customers.

Duke Energy is the host utility for next year’s DISTRIBUTECH, which will take place in Orlando, Florida from February 26-29, 2024.

BofA Securities, Inc. is serving as the financial advisor and Mayer Brown LLP is serving as the legal counsel to Duke Energy for this transaction. Scotia is serving as the financial advisor and Kirkland & Ellis is serving as the legal counsel to ArcLight.

Duke is also selling its utility-scale renewables business to Brookfield for $2.8 billion, following the company’s announcement in 2022 that it would explore divesting its renewable energy business. Duke expects to close on the sale by the end of the year.

Proceeds from both transactions will be used to strengthen Duke Energy’s balance sheet and avoid additional holding company debt issuances, the company said. These transactions will support Duke Energy’s 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 onto its system by 2035.