National Grid sells $1.7 billion US renewables arm to Brookfield

Britain's National Grid has reached a deal to sell its U.S. onshore renewables business to Canadian investment firm Brookfield Asset Management 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, BP and Equinor 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 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)