Since early 2023, major US utilities like Duke Energy, American Electric Power, and Algonquin Power & Utilities Corp. have sold off significant renewable assets, with Iberdrola and Pacific Gas and Electric Company following suit.
But why sell renewables in the US?
💡 Unlocking Value: These utilities believe the full value of these assets isn't being realized under their current structure. The sale of these assets allows them to secure handsome multiples, improving their creditworthiness and financial flexibility for future investments.
🔧 Streamlining Operations: Selling these assets enables utilities to transform into pure-play regulated entities. This shift simplifies their structure, allowing them to focus on lower-risk, regulated investment opportunities with enhanced operational efficiency and capital discipline.
💸 Funding Billion-Dollar Investment Plans: Proceeds from these transactions are earmarked for massive investment plans, with a significant portion directed toward grid investments in the US.
