ByTsvetana Paraskova– Feb 24, 2025, 7:30 AM CST
National Grid plc has agreed to sell its National Grid Renewables US onshore renewables business to investment group Brookfield Asset Management in a $1.735 billion deal.
National Grid will sell its onshore renewables business in the U.S. to Brookfield Asset Management and its institutional partners including Brookfield Renewable Partners, the UK-based operator of transmission and distribution networks in Britain and some parts of the United States said on Monday.
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The terms of the transaction imply an enterprise value for National Grid Renewables of $1.735 billion. The final cash consideration will be subject to customary completion adjustments, the seller said.
The deal is part of National Grid’s strategy from May 2024 to focus on networks and streamline its business.
Subject to certain consents and regulatory approvals, National Grid expects that the transaction will be completed in the first half of the financial year ending March 31, 2026.
The business that Brookfield is buying develops, constructs, owns, and operates utility-scale, solar, onshore wind, and battery storage assets in the United States. At present the assets include 1.8 gigawatts (GW) in operation and 1.3 GW under construction.
In recent months, Europe’s big oil and gas companies, including Shell, Equinor, and BP, have scaled back investments and targets in renewable energy and other low-carbon solutions amid poor returns and soaring costs.
Brookfield, however, is raising funds for solutions for the energy transition.
Last September, Brookfield Asset Management announced an initial closing of $2.4 billion for the Catalytic Transition Fund, a significant milestone towards the target of raising up to $5 billion for deployment towards clean energy and transition assets in emerging markets.
More recently, Brookfield has moved to seize opportunities in AI.
The investor earlier this month announced a $21 billion (20 billion euros) infrastructure investment program to support the deployment of AI infrastructure in France. The Brookfield investment will be targeted across data centers and associated infrastructure sectors which are vital for AI deployment.
By Tsvetana Paraskova for Oilprice.com
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