Duke Energy Completes Sale of 1.2 GW Renewable Assets to John Hancock

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Duke Energy has completed the sale of a minority interest in a portion (1.2 GW) of its commercial renewable energy portfolio to John Hancock

North Carolina-based power utility, Duke Energy has announced that it has completed the sale of the previously announced minority interest in a portion (1.2 GW) of its commercial renewable energy portfolio owned and operated by its affiliate, Duke Energy Renewables, to John Hancock, a division of Manulife Financial Corporation.

The total enterprise value of this portion of Duke Energy’s commercial renewable energy portfolio is approximately USD 1.25 billion (including proportional existing project-level debt). The sale will result in pre-tax proceeds to Duke Energy of  USD 415 million.

“We’re excited to begin partnering with John Hancock to continue providing clean and affordable energy to our customers across the country,” said Rob Caldwell, president of Duke Energy Renewables.

“So far this year, we’ve announced more than 1,100 megawatts of additional renewable energy projects that will come online by the end of 2020, including our largest ever wind and solar projects. We see a bright future for renewables investment and this collaboration will help us deliver long-term value to customers and investors.”

As majority owner, Duke Energy remains committed to growing its commercial renewable energy business. The transaction will help fund the company’s future growth capital plans with proceeds used to reduce future debt issuance needs. Duke Energy will retain the majority of the remaining tax benefits from the projects.

The portion of Duke Energy’s commercial renewables energy portfolio to be sold includes 49% of 37 operating wind, solar and battery storage assets and 33% of 11 operating solar assets across the US. Now complete, John Hancock’s interest will represent approximately 1.2 GW of generating capacity.

“We believe this investment with Duke Energy represents a rare opportunity to acquire a diversified, large scale renewable energy portfolio alongside a high-quality partner and operator,” said Recep Kendircioglu, portfolio manager of JHIF and Head of John Hancock’s Infrastructure Investments. “We share a common view on the importance of renewable energy in the U.S. and we look forward to a successful partnership with Duke Energy.”