Duke says the deal, expected to close in the second half of this year, is a validation of its renewables portfolio and a financial win for the company, but does little to change daily operations. The sale will provide Duke with pre-tax proceeds of $415 million, while allowing the company to retain the majority of the remaining tax benefits from the projects. "We will continue to develop projects, grow our portfolio and maintain overall operational responsibilities for the projects just as we do today," Rob Caldwell, president of Duke Energy Renewables, said in a statement. Duke Energy Renewables says it has completed more than 99 projects in 17 states, for a total of almost 3 GW of renewable capacity. Under terms of the deal, John Hancock will also have the right to acquire a minority interest in additional wind and solar projects in the future, which Duke said would provide it a potential source of future growth capital. JHIF is an infrastructure-focused private equity fund with approximately $2 billion of committed capital. The Federal Energy Regulatory Commission must approve the deal, along with the Public Utility Commission of Texas and the Committee on Foreign Investment in the United States.
Duke Energy plans to sell 49% of 37 operational solar, battery storage and wind assets, and a third of 11 operational solar assets worth $$415m to the John Hancock Infrastructure Fund and John Hancock Life Insurance. North Carolina-based Duke will use the proceeds to fund capital plans and reduce the need for future debt issuance. Duke will receive a pre-tax figure of 1.25bn from the sale, while retaining most of the tax benefits from the projects, in which it will still own a majority stake. The deal is subject to approvals.