Duke Energy has sold a minority interest in a portion of its commercial renewable energy portfolio owned and operated by its affiliate, Duke Energy Renewables, to the John Hancock Infrastructure Fund (JHIF).
Financial terms of the deal were not disclosed.
The fund is owned by Manulife Investment Management and its affiliate John Hancock Life Insurance Company (U.S.A).
In April, Duke Energy entered into a definitive agreement for the sale. Duke Energy previously said the total enterprise value of this portion of Duke Energy’s commercial renewable energy portfolio is approximately $1.25 billion (including proportional existing project-level debt). The sale will result in pre-tax proceeds to Duke Energy of $415 million.
With the deal, John Hancock’s interest in the portfolio represents 1.2 gigawatts 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.”
The portion of Duke Energy’s commercial renewables energy portfolio includes 49 percent of 37 operating wind, solar and battery storage assets and 33 percent of 11 operating solar assets across the United States.
“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,” said Rob Caldwell, president of Duke Energy Renewables. “We see a bright future for renewables investment, and this collaboration will help us deliver long-term value to customers and investors.”
One of the largest energy holding companies in the United States, Duke Energy has an electric generating capacity of 51,000 megawatts through its regulated utilities and 3,000 megawatts through its nonregulated Duke Energy Renewables unit.
