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National Grid announced Monday that it has reached an agreement to sell its U.S.-based renewable energy arm to Canadian asset management giant Brookfield for $1.74 billion in cash. The move marks Brookfield’s latest strategic expansion into the booming green energy sector, reinforcing its stake in the global transition toward renewables.

The Deal Breakdown

The British energy titan expects to finalize the sale of National Grid Renewables' onshore wind assets by September, pending regulatory approvals from the Federal Energy Regulatory Commission and compliance with the Hart–Scott–Rodino antitrust act.

Skadden Arps Slate Meagher & Flom LLP is leading Brookfield’s legal counsel, with a team including M&A expert Katherine Ashley, energy and infrastructure specialists Aryan Moniri and Joyce Chang, and tax partner Sean Shimamoto.

Meanwhile, National Grid PLC is being advised by Morgan Lewis & Bockius LLP, with Citi handling financial advisory services.

A Renewable Energy Powerhouse

National Grid Renewables operates and develops solar, onshore wind, and battery storage projects across the U.S., boasting 1.8 gigawatts of energy capacity—enough to power a city of nearly two million people. An additional 1.3 gigawatts of renewable projects are currently under construction.

The FTSE 100-listed company initiated the sale in 2024 as part of a broader strategy to streamline operations and concentrate on its core energy networks.

Neither National Grid nor Brookfield immediately responded to requests for comment.

A Strategic Move Amidst Energy Transition

Russ Mould, investment director at AJ Bell, weighed in on the deal, stating, “National Grid must channel significant capital into upgrading its electricity infrastructure on both sides of the Atlantic. Divesting non-core businesses has long been a part of this strategy.”

Louis Knight, an analyst at research firm Third Bridge Group, pointed to the long-term significance of the deal, emphasizing the growing demand for energy in the U.S. “Brookfield’s purchase might not necessarily indicate confidence in the sector amid Donald Trump’s anti-green rhetoric, but the firm has a diverse portfolio that allows it to effectively integrate these U.S. assets,” Knight said.

Brookfield’s Expanding Renewable Portfolio

Brookfield, one of the world’s largest investors in renewable power, boasts approximately 34,000 megawatts of generating capacity across its global holdings. The firm disclosed in October that it had agreed to acquire a minority stake in four offshore wind farms in the U.K. from Danish energy giant Orsted for £1.7 billion ($2.14 billion).

The International Energy Agency projects that global renewable electricity generation will surge to more than 17,000 terawatt-hours by 2030—an 90% increase from 2023 levels. That growth would be sufficient to meet the combined power demands of both the U.S. and China by the decade’s end, further underscoring the value of assets like those being acquired by Brookfield.

With a rapidly shifting energy landscape, this deal highlights the high-stakes competition for control over the world’s renewable resources.