Duke Energy Sells Distributed Gen Business to ArcLight for $364M

• Duke Energy agrees to sell its commercial distributed generation business to ArcLight, with an enterprise value of $364 million. Duke Energy to receive $259 million in proceeds to help achieve its goal of becoming a net-zero carbon company by 2050 with 30,000 megawatts of regulated renewable energy.

Duke Energy, a Fortune 150 company, has announced an agreement to sell its commercial distributed generation business to an affiliate of ArcLight Capital Partners, LLC for an enterprise value of $364 million. Duke Energy expects to receive approximately $259 million of proceeds from this transaction upon closing. This distributed generation business includes REC Solar operating assets, development pipeline and O&M portfolio, as well as distributed fuel cell projects managed by Bloom Energy. Employees of the distributed generation business will transition to ArcLight to maintain business continuity for its operations and customers.

Duke Energy is investing in clean energy initiatives to become a net-zero carbon company by 2050. This includes investments to enhance grid reliability and help incorporate over 30,000 megawatts of regulated renewable energy onto its system by 2035. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. It is also exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.

What Goals Is Duke Energy Working Towards?

• Becoming a net-zero carbon company by 2050
• Enhancing grid reliability and incorporating over 30,000 megawatts of regulated renewable energy onto its system by 2035
• Reducing electric generation carbon emissions by 50% by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% by 2040
• Exploring zero-emission power generation technologies such as hydrogen and advanced nuclear