NextEra Energy Inc.’s pursuit of Duke Energy Corp. could result in a merger of utility giants that could speed the renewable-energy transition throughout the South and Midwest. NextEra, the nation’s largest renewable-energy company, is seeking to expand its regulated utility business. Duke, meanwhile, recently proposed plans to invest heavily in renewables as it works to cut carbon emissions and reshape a power-generation portfolio largely reliant on fossil fuels. To learn more, read NextEra, Renewable-Energy Giant, Seeks Greater Scale With a Duke Takeover.”  (Reading this article requires a subscription.)

Key Takeaways:

  • Analysts said such a deal could allow NextEra to capitalize on Duke’s plans to invest $56 billion over the next five years as it works to reduce its reliance on coal- and gas-fired power plants in favor of new solar and wind farms.
  • “Duke is a company that’s just getting going on the energy transition,” said Vertical Research Partners analyst Jonathan Arnold. “If you’re NextEra, you’re going to present yourself as someone who can help accelerate that transition and do it more cheaply.”
  • If a merger were to occur, it would be the largest ever completed in the utility space. The combined company would have a market value of roughly $200 billion.
  • Merging the two companies would face steep regulatory and political hurdles. It would require signoff from state regulators in multiple states, as well as federal regulators.

Path to 100% Perspective:

Governments and organizations of all sizes are announcing their plans to achieve a renewable energy future. However, these plans face challenges of all types and scrutiny at all levels since the path to 100% remains unfinished at this point. Ambitious renewable energy goals remain economic and climate-centered drivers for a growing number of interested parties, which is accelerating the competition to achieve these goals.

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