National Grid to sell US renewables business to Brookfield

Monday 24 February 2025 10:59 am
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Monday 24 February 2025 11:00 am

Nationwide Grid has agreed to promote its US renewables enterprise to Canada’s Brookfield Asset Administration in a deal value £1.4bn.

The UK’s vitality operator mentioned the transaction could be an “vital step” in long-running plans to slim down the enterprise.

Nationwide Grid offered each its Electricty System Operator (ESO) and its holdings in Nationwide Fuel final 12 months, and introduced a serious £7bn fairness elevate.

Monday’s deal stays topic to regulatory approval however will possible be accomplished within the first half of the monetary 12 months ending March 2026 if there aren’t any hitches.

It comes amid uncertainty in the US over how tax incentives in Biden’s Inflation Discount Act will likely be applied beneath President Donald Trump.

Nonetheless, AJ Bell’s Funding Director Russ Mould cautioned that it was “not a rushed response” to Trump’s inexperienced vitality scepticism and had been within the works “for a while.”

“The very fact the corporate has received the deal throughout the road within the new political atmosphere could be met with some aid. The value tag appears affordable for a set of property which made a modest contribution to the group.

He added: “Consideration could now flip to the corporate’s acknowledged plan to promote its Grain LNG terminal in Kent – a proposal which attracted some controversy when it was introduced over the potential affect to vitality safety.”

Nationwide Grid Renewables owns and operates round 1.8GW of photo voltaic, onshore wind and battery storage property within the US.

It additionally runs a part of New York and Massachusetts energy and pure gasoline community, esrving round 20m individuals.

Shares within the wider group rose 1.47 per cent in early buying and selling on Monday.