UK-based National Grid has agreed to sell its US onshore renewables unit National Grid Renewables to Brookfield Asset Management and its institutional partners, including Brookfield Renewable Partners, in a deal valued at $1.73bn.
The sale aligns with the British electricity and gas utility company’s strategy to focus on its core energy network business and streamline operations. The final cash consideration will be subject to customary completion adjustments.
National Grid has been divesting non-core assets, including its renewables arm and the Grain liquefied natural gas (LNG) terminal in the UK, as part of a broader repositioning effort.
In May 2024, the company announced plans to invest £60bn in the five years to the end of March 2029 to upgrade its energy networks. National Grid is targeting a 10% annual asset growth while pushing its total assets towards £100bn by 2029.
Nearly 80% of the firm’s investment is allocated to its electricity networks, shifting its asset mix to 80% electricity and 20% gas by 2029.
National Grid Renewables develops, constructs, owns, and operates utility-scale solar, onshore wind, and battery storage projects across the US. Its portfolio includes 1.8GW in operation and a further 1.3GW under construction.
Subject to consents and regulatory approvals, the transaction is expected to be completed in the first half of the financial year ending 31 March 2026.
In December 2024, National Grid outlined a further £35bn investment in its electricity transmission division for the five-year period from April 2026 to March 2031.
The RIIO-T3 business plan, submitted to Ofgem, aligns with the National Energy System Operator’s Future Energy Scenario 2024 Holistic Transition programme. The plan also aims to support UK’s clean energy targets.
