National Grid sells US renewables business for $1.735 billion
- National Grid agreed to sell its US onshore renewables business to Brookfield Asset Management for $1.735 billion.
- This divestment is part of a strategy to focus on the company's energy networks and significant infrastructure investments in the UK.
- The sale reflects the shifting landscape of American energy policies and National Grid's commitment to enhancing the UK's energy infrastructure.
In December 2024, National Grid, a major energy infrastructure group based in the UK, announced its decision to sell its US onshore renewables business to Brookfield Asset Management for approximately $1.735 billion. This strategic move aimed to help the company focus on its core operations in energy networks, particularly within the UK. The sale is part of National Grid's broader efforts to streamline its business portfolio and invest in key infrastructure projects. The divestment decision stems from National Grid's ongoing evaluation of its asset portfolio in light of a significant rights issue that occurred in May 2024. During this process, the company communicated its intention to withdraw from the US renewables market, a move influenced by the shifting landscape of American energy policy under the Trump administration. National Grid's aim was to concentrate its resources on its electricity-transmission business, where it plans to allocate £35 billion in investments over a five-year period, starting in 2024 and concluding in 2029. This long-term strategic outlook is intended to nearly double the energy transport capacity within the UK. In addition to selling its renewables arm, National Grid is also moving forward with the sale of its UK liquid natural gas asset, Grain LNG. The complete divestment from these non-core assets is seen as a critical step towards fulfilling the company's five-year infrastructure investment program, which totals around £60 billion across various network projects. More than £30 billion is allocated for development in England, Scotland, and Wales, underpinning the firm's commitment to enhancing the UK's energy infrastructure. Overall, this transition reflects a significant shift in focus for National Grid, aligning its operations with future energy demands and regulatory conditions. The withdrawal from the US clean energy sector highlights both the challenges and opportunities the company faces in adapting to new energy policies and market dynamics. The deal with Brookfield Asset Management is slated to complete by the end of September 2025, marking a pivotal moment in National Grid's strategic realignment.