Duke Energy on Oct. 4 announced it has completed the sale of its commercial distributed generation portfolio to an investment fund managed by ArcLight Capital Partners.
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.
BofA Securities 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 Energy is also finalizing the sale for its utility-scale renewables business platform, which it expects to close on by the end of 2023. Proceeds from both transactions will be used to strengthen Duke Energy’s balance sheet and avoid additional holding company debt issuances. 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.
News item from Duke Energy