Renewable energy company Brookfield Renewable is set to acquire Duke Energy’s unregulated utility-scale commercial renewables business in the U.S. for approximately $2.8 billion. The amount includes the assumption of debt and non-controlling tax equity interests.

The sale agreement for the Commercial Renewables business platform includes more than 3.4 GW of utility-scale solar, wind, and battery storage across the U.S., net of joint venture partners’ ownership, operations, new project development, and current projects under construction.

Duke Energy expects to receive around $1.1 billion in net proceeds from the transaction, which will be utilized to bolster its balance sheet and prevent the need for additional debt issuances by the holding company.

The company aims to prioritize the growth of its regulated businesses, focusing on investments that enhance grid reliability and facilitate the integration of over 30 GW of regulated renewable energy into its system by 2035.

The transaction is expected to close by the end of this year.

The primary operations of the Commercial Renewables business will remain in Charlotte, North Carolina, and the Duke Energy employees that support the business will transition to Brookfield to maintain business continuity for its operations and customers.

Connor Teskey, CEO of Brookfield Renewable, said, “With this acquisition, we are adding a scale operating renewable platform with a full suite of in-house capabilities and a proven management team experienced in operations and development. We are also adding to our pipeline of renewable development projects, solidifying our position as one of the largest renewable energy businesses in the U.S. with almost 90,000 megawatts of operating and development assets.”

Brookfield Renewable is a major player in renewable energy with a wide range of hydroelectric, wind, solar, and storage facilities. The company has a strong presence across North America, South America, Europe, and Asia, with an impressive total installed capacity of about 31.6 GW.

It has an extensive development pipeline of approximately 131.9 GW, indicating its commitment to expanding the renewable energy portfolio in the future.

The company is also involved in various other renewable energy initiatives, including carbon capture and storage, recycled material production, renewable natural gas pipeline projects, solar panel manufacturing, and green ammonia production.

Brookfield’s net loss narrowed to $32 million in the first quarter of 2023 from $78 million year-over-year due to robust hydropower generation across the portfolio, strong realized power pricing and asset availability.

Last month, Brookfield Renewable provided $1.07 billion in funding to support Avaada Group’s green hydrogen and green ammonia projects in India.