Duke Energy starts strategic review of commercial renewables business
Duke Energy solar park in Halifax County, North Carolina. Source: Duke ENergy (www.duke-energy.com).
August 8 (Renewables Now) - US utilities company Duke Energy (NYSE:DUK) announced a strategic review of its commercial renewables business as it reported second-quarter results last week.
The renewables platform is one of the 10 largest solar and wind businesses in the US with around 5.1 GW of wind and solar in operation, of which about 3.5 GW represent net ownership for the company. It also has a “robust” development pipeline.
Chair, president and chief executive Lynn Good said in the company’s earnings call that the strategic review is expected to be completed later this year or in early 2023.
Duke Energy is considering strategic options for its commercial renewables business in view of “significant growth outlook” for regulated renewables. It said that commercial renewables is its smallest segment, accounting for less than 5% of consolidated earnings, and offers a slower growth trajectory than regulated electric and gas utilities. Most of the proceeds from a potential sale would be used for debt repayment and avoidance.
Good said that "as we look forward to the remainder of this decade and beyond, we have line of sight to significant renewable grid and other investment opportunities within our faster-growing regulated operations as we execute the industry's largest clean energy transition."
In the second quarter of 2022, the commercial segment delivered flat results year-over-year as higher wind resources were offset by fewer projects brought online. On an adjusted basis, segment income was USD 46 million (EUR 45m), compared to USD 47 million in the second quarter of 2021.