Clean energy investment and management platform Brookfield Renewable announced on Tuesday the acquisition of Duke Energy Renewables, the unregulated utility scale Commercial Renewables business of electricity provider Duke Energy, in a transaction valued at $2.8 billion.

According to Brookfield, the transaction will help the company solidify its position as one of the largest renewable energy businesses in the U.S.

Connor Teskey, CEO of Brookfield Renewable, said:

“With this acquisition, we are adding a scale operating renewable platform located in highly attractive markets that we expect will immediately contribute meaningful cash flows with significant upside from potential asset repowering and synergies. 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.”

Duke Energy’s Commercial Renewables platform includes more than 3,400 megawatts utility scale solar, wind and battery storage across the U.S., as well as a 6,100 megawatt development pipeline. Duke Energy said that the transaction, expected to close by year-end, will allow it to focus on the growth of its regulated businesses, including its plans to incorporate more than 30,000 megawatts of regulated renewable energy into its system by 2035, and to invest in enhanced grid reliability.

Lynn Good, Chair, President and CEO of Duke Energy, said:

“As one of the country’s largest renewable energy operators, Brookfield has the resources to support the continued growth and success of the Commercial Renewables’ portfolio. This sale is an important step in our transition into a purely regulated company with significant grid and clean energy investment plans that will deliver benefits to our customers and stakeholders.”