National Grid has agreed to sell its US onshore renewables business for around £1.4billion as part of an ongoing strategy shake-up. The group, which manages Britain's energy network but also runs gas and electricity businesses in the US, has been refocusing its investments and streamlining operations since May last year.
National Grid told shareholders on Monday it would sell National Grid Renewables for an enterprise value of $1.74billion, including debt, to private equity giant Brookfield and its investment partners. It said the deal, expected to complete by March next year, is 'another important step in delivering National Grid's previously communicated strategy to focus on networks and streamline our business'.
National Grid shares opened 0.6 per cent higher at 964.2p. They have added around 2.4 per cent over the last 12 months. It follows the sale of National Grid's Electricity System Operator in September after the Government struck a £630million deal to bring the business back into state hands.
National Grid has been refocusing its investments and streamlining operations. In December, National Grid unveiled plans to invest £35billion in its electricity-transmission business as part of an upgrade to Britain's energy infrastructure. The FTSE 100-listed energy infrastructure group said the five-year investment plan includes £11billion to maintain and upgrade existing networks and £24billion for pipeline investment, including £15billion to boost network capacity.
The 'unprecedented level of investment' is expected to almost double the amount of energy that can be transported around Britain. National Grid intends to upgrade 3,500 kilometres of overhead lines and aims to connect 35GW of new generation and storage capacity.
