US-based power company Duke Energy is selling a minority stake in its renewables business including battery storage assets to infrastructure investment firm John Hancock.
Duke said the sale would help fund “future growth capital plans”— and as a continuing majority owner, Duke committed to expanding its commercial renewable energy business.
The portion of the renewables energy portfolio to be sold to the John Hancock Infrastructure Fund (JHIF) and John Hancock Life Insurance Company (USA)— a division of Manulife Financial Corporation— includes 49% of 37 operating wind, solar and battery storage assets and 33% of 11 operating solar assets across the US.
Once the sale has closed, subject to regulatory approvals, John Hancock’s interest will represent approximately 1.2GW of generating capacity.
The total enterprise value of this portion of Duke’s commercial renewable energy portfolio is approximately US$1.25 billion. The sale will result in pre-tax proceeds to Duke of $415 million.
Last October, Duke outlined plans to invest $500m to build around 300 megawatts of battery storage in North and South Carolina over the next 15 years.