- Brookfield Asset Management is purchasing a 19.7% stake in Duke Energy’s Florida utility for $6B, reflecting rising investor interest in US energy infrastructure.
- The agreement allows Duke Energy to increase its five-year investment plan in Florida by $4B, bringing the total to $16B through 2029.
- A growing number of private equity firms are backing utilities as power demand rises due to population growth, AI, and electrification.
Demand Rises, Investment Follows
According to Bloomberg, Florida continues to experience rapid population growth, leading to higher electricity use. In response, Duke Energy plans to boost utility investment in the state’s electric grid. Brookfield’s $6B investment will help fund that expansion without requiring Duke to raise debt or issue new shares.
The funding will roll out through 2028, supporting upgrades to Florida’s electric grid and storm recovery systems.
A Growing Financing Trend
Private investors are increasingly taking minority stakes in utility businesses. For example, American Electric Power recently sold part of its transmission business to KKR & Co. and PSP Investments. Similarly, FirstEnergy sold an additional stake to a Brookfield affiliate in 2023.
“There are a lot of examples where investors outside the utility industry are taking ownership positions in utility properties,” said Paul Patterson, an analyst at Glenrock Associates.
These deals help utilities access capital for utility investment while avoiding the financial pressure of traditional equity or debt offerings.
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Regulatory Approvals and Strategic Moves
The transaction is set to close in early 2026, pending reviews by the Federal Energy Regulatory Commission, the Committee on Foreign Investment in the U.S., and possibly the Nuclear Regulatory Commission.
Duke Energy will use some of the proceeds to pay down debt and improve its credit profile. Last week, the company also announced the sale of its Tennessee natural gas business to Spire Inc., shifting focus to core utility operations.
Why This Deal Matters
This deal highlights the growing role of private capital in U.S. energy infrastructure. As AI, data centers, and EVs drive energy consumption higher, utilities must invest more in grid upgrades. However, many are choosing strategic partnerships with infrastructure investors rather than relying on traditional financing.
Brookfield’s stake signals long-term confidence in Florida’s utility market. As this trend continues, expect more collaborations between institutional investors and regulated utilities.
