The British company National Grid has reached an agreement to sell its renewable energy division in the U.S., National Grid Renewables, to the Canadian investment firm Brookfield Asset Management for a total of 1.74 billion dollars.
This transaction is part of National Grid’s strategy to focus on its network operations and simplify its business, a plan that was announced in May 2024.
National Grid Renewables, based in Minneapolis, develops, builds, owns, and operates large-scale solar, onshore wind, and battery storage assets in 34 states, currently managing 1.8 gigawatts (GW) in operation and 1.3 GW under construction.
National Grid’s decision raises questions about the future of the clean energy market
The company has stated that the completion of the sale is expected in the first half of the fiscal year ending March 31, 2026.
Brookfield Asset Management, for its part, manages approximately 15 GW of renewables in the U.S. and has another 69 GW in development projects, operating in various areas, including solar, wind, and hydroelectric energy.
In a recent report on its fourth quarter and full year results for 2024, the company expressed being “more confident than ever in the business growth prospects, particularly in the U.S.”
This move by National Grid is part of a trend observed among large energy companies, such as Shell, Equinor, and Duke Energy, that are redirecting their strategies away from renewable energy, citing declining profitability in this sector.
The decision by National Grid, along with that of these companies, raises questions about the future of the clean energy market in a context of financial and operational challenges.