Brookfield Asset Management is set to acquire National Grid’s renewable energy business based in the United States for $1.7 billion. This move reflects Brookfield’s strong belief in the renewable energy sector, despite challenges posed by political uncertainties.
London-listed National Grid announced the sale of its onshore renewables division last year as part of its strategy to concentrate on its core energy networks. The deal follows President Donald Trump’s recent decisions to halt offshore wind approvals and delay financial incentives for green energy.
However, Brookfield’s president, Connor Teskey, expressed optimism about the future. He mentioned that he expects the administration’s focus on “growth, industrialization, and American excellence” will increase electricity demand.
The assets included in the National Grid acquisition total 3.1 gigawatts and consist of operating and under-construction solar, wind, and battery storage facilities. Teskey noted that the increasing demand for energy will require various power-generating solutions, with renewables being front-runners due to their cost-effectiveness.
Brookfield, based in New York, recently purchased a majority stake in the French energy company Neoen and is looking to acquire more publicly listed companies, identifying a significant gap in valuations between public and private sectors. Last year, they partnered with Microsoft to develop 10.5 gigawatts of renewable energy capacity aimed at powering their data centers, showcasing a growing interest from technology firms in green energy.
National Grid announced on Monday that it anticipates the sale’s completion later this year. With operations in both the US and the UK, the company is investing heavily in expanding its electricity networks, predicting a rise in electricity demand as the transition to renewable sources accelerates. In May of last year, it raised £7 billion through a rights issue to fund these initiatives and is also working on selling its liquefied natural gas terminal located in the Isle of Grain, England.
The onshore renewables segment is part of National Grid Ventures, which operates outside of the company’s regulated networks business. For the half-year period ending September 2024, National Grid Ventures reported underlying operating profits of £147 million.