In a strategic move towards its regulated utilities, Duke Energy has announced the sale of its commercial rooftop solar business for $364 million. The buyer, Boston-based ArcLight Capital Partners, will acquire the unit that provides rooftop solar systems and gas or hydrogen fuel cells to businesses seeking to generate their own clean energy.
Under the agreement, ArcLight will take over all assets of the division, including operations and maintenance contracts, sales pipeline, and the fuel cell projects managed by California-based Bloom Energy. The deal, which will see fewer than 90 Duke employees transition to ArcLight, is expected to close by the end of the year, netting Duke $259 million.
This follows Duke's announcement last month of its plans to sell its commercial solar and wind business to Brookfield Renewable for $2.8 billion, a deal expected to net Duke $1.1 billion. This division operates wind and solar farms and sells electricity to other utilities, businesses, or institutions.
Duke Chair and CEO Lynn Good stated that the proceeds from both sales would finance the company's shift to clean energy in its regulated utilities in the Carolinas, Florida, and the Midwest. The business units being divested by Duke operate in unregulated markets, selling energy or services directly to businesses.
Good said in a press release, "The sale of our commercial renewables businesses streamlines our portfolio and provides the resources to support the long-term needs of our customers in our growing regulated territories. Over the next decade, we plan to invest significant amounts of capital to fund the critical energy infrastructure necessary to serve our customers and support our clean energy transition."
Duke Energy is among several large utility companies that have recently sold renewable energy projects for similar reasons. Duke has outlined plans to invest $145 billion in its clean energy transition across its territories over the next decade.
source: Duke Energy
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