Britain's National Grid (NG.L), opens new tab has reached a deal to sell its U.S. onshore renewables business to Canadian investment firm Brookfield Asset Management (BAM.TO), opens new tab for $1.74 billion including debt, it said on Monday.
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.
Energy companies such as Shell (SHEL.L), opens new tab, BP (BP.L), opens new tab and Equinor (EQNR.OL), opens new tab have already begun to scale back investment or divest their renewables and low-carbon businesses because of declining profitability.
National Grid expects the deal with Brookfield and institutional partners including Brookfield Renewable Partners (BEP.N), opens new tab to be completed in the first half of the financial year to March 31, 2026, subject to regulatory approvals.
National Grid Renewables, based in Minneapolis, develops and operates solar, onshore wind and battery storage assets in the United States, with 1.8 gigawatts of capacity in operation and 1.3 gigawatts under construction.
Shares in National Grid, which runs Britain's energy systems and operates transmission and distribution networks in some parts of the United States, were up 1% in early trade.
Brookfield Renewable Partners' U.S. portfolio of hydropower, wind, solar and storage facilities spans 34 U.S. states.
($1 = 0.7896 pounds)
