Solar, Storage

Duke Carolinas Completes $1B Green Bonds Issue to Finance Renewables and Energy Storage

Duke Energy Carolinas has completed an historic $1 billion issuance of green bonds to finance renewable projects in North and South Carolina.

Duke’s inaugural green bonds program was priced on Monday and the transaction was closed Thursday. The company is focused on emissions reduction by retiring coal-fired plants, increasing nuclear generation capacity and has add close to 650 MW of built or purchased solar energy.

The future plan is to add another 1,800 MW of new-build and purchased solar capacity over the next five years.

“Today marks a milestone for our company and demonstrates our continued commitment to generating cleaner energy for our customers and communities,” said Duke Energy executive vice president and chief financial officer Steve Young. “We are proud to provide this option for investors to advance our goal of reducing carbon emissions by 40 percent by 2030.”

Duke’s green bonds have a weighted average coupon of 3.74 percent with between three and 10-year maturities, according to the release.

A few utilities are creating new, sustainable ways of financing clean energy projects by offering the green bond programs. Earlier this month, Virginia-based Dominion Energy announced it closed an inaugural offering of $362 million, which will be used to reimburse the company for acquisition, development and/or construction of 20 merchant solar projects planned to generate 574 MW in capacity.

Both utilities have released sustainability reports promising huge cuts in carbon emissions from their operations.

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Dominion Energy will present a session in the “Emissions: Cut it Out” track at POWER-GEN at 1 p.m ET Wednesday, December 5. POWER-GEN is happening December 4-6 in Orlando at the Orange County Convention Center, West Halls.

Financing both conventional and renewable projects also will be part of the “Show Me the Money!” track at POWER-GEN.