Brookfield Buys National Grid’s Renewables Business in US

Notwithstanding the US President Donald Trump’s decision in funding against clean energy projects, the UK’s National Grid on Monday announced that it has agreed to sell its National Grid Renewables US onshore renewables business to the Canadian asset management firm Brookfield Asset Management and its institutional partners including Brookfield Renewable Partners.

This transaction is another important step in delivering National Grid’s previously communicated strategy to focus on networks and streamline its business, as announced in May 2024, National Grid Informed London Stock Exchange (LSE) in a regulatory filing.

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 completion of the transaction will be subject to certain consents and regulatory approvals and subject to these clearances, National Grid expects that the transaction will be completed in the first half of the financial year ending 31 March 2026.

National Grid has been refocusing investments on its energy network business and seeking buyers for its renewables arm and Grain liquefied natural gas (LNG) terminal in Britain as part of its divestment strategy announced last May.

According to Reuters, energy companies such as Shell, BP and Equinor have already begun to scale back investment or divest their renewables and low-carbon businesses because of declining profitability.

National Grid Renewables, based in Minneapolis, develops and operates solar, onshore wind and battery storage assets in the US, with 1.8 GW of capacity in operation and 1.3 GW under construction in various stages.

The shares in National Grid, which runs Britain’s energy systems and operates transmission and distribution networks in some parts of the US, were up 1.2% in early trade, the report said.

Brookfield Renewable Partners’ U.S. portfolio of hydropower, wind, solar and storage facilities spans 34 US states.

Focus on Growth

Meanwhile, speaking to Financial Times early this month, Brookfield President Connor Teskey said that the company expected its focus on “growth, industrialisation and American excellence” to boost demand for electricity. 

“The scale of the demand growth requires companies to use any and all types of power generation solutions,” he said. “Renewables are going to benefit from that and will play a leading role because of their low-cost position,” Teskey said.

Brookfield has recently bought a 53.12% stake in French power producer Neoen at a price of $41.73 per share for $6.26 billion, and Teskey added that it was looking for more listed companies to buy given a large gap between public and private valuations.