Duke Energy greenlights sale of $4B commercial renewable energy unit amid ‘robust’ interest – Utility Dive

by | Nov 7, 2022 | Energy

Dive Brief:

The Duke Energy board has approved the sale of the company’s commercial renewable energy business after receiving “robust” interest from potential buyers, CEO Lynn Good told investors during a Friday third quarter earnings call. Company leaders have said previously they believe the company’s commercial arm is worth $4 billion.

The company expects to announce the details of its sale of commercial renewable energy assets, which includes 3.4 GW of wind and just under 1.7 GW of solar, in early 2023.

“Adjusted” third quarter earnings from Duke Energy’s regulated utilities increased by $51 million year-over-year, to $1.54 billion from $1.49 billion, and company leaders anticipate continued growth into the years ahead. However, they said the company is targeting an additional $100 million in cost reductions to get ahead of rising interest rates and inflation.

Dive Insight:
Although company leaders maintain a positive outlook for 2023 and beyond, Duke Energy continues to prepare for headwinds in the future—especially rising interest rates.
The company’s utilities saw earnings grow in the third quarter. Electrical demand is now up 2% over pre-pandemic levels in the company’s service areas, and the growth is expected to continue based on recent economic developments, according to Brian Savoy, executive vice president and CFO for Duke Energy. Recent months have seen announcements of new manufacturing and data center facilities that Good said should increase Duke Energy sales over the next five years.
Duke Energy also maintains a positive outlook for the economy overall, although Good no …

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