National Grid has agreed to sell its US onshore renewables business to Brookfield Asset Management and its institutional partners for $1.7bn (£1.4bn).

The firm said that this is "another important step" in delivering its previously communicated strategy to focus on networks and streamline the business, as announced in May 2024.

National Grid Renewables develops, constructs, owns and operates utility-scale, solar, onshore wind and battery storage assets in the US, with 1.8GW in operation and 1.3GW under construction.

The sales comes as the National Grid looks to decarbonise the energy system, with programmes including the delivery of The Great Grid Upgrade, which is the "largest overhaul of the UK grid in generations", and the building of the Upstate Upgrade, the largest investment in New York’s electricity transmission network for over a century.

The final cash consideration is set to be subject to "customary completion adjustments".

Investment director at AJ Bell, Russ Mould, stated: "National Grid has to spend a lot of money to upgrade its electricity networks on both sides of the Atlantic and slimming down in other areas of the business has always been a component of that strategy. The sale of the company’s US onshore renewables business is not a rushed response to the Trump administration’s more sceptical views on green energy, but something which has been in the works for some time, having first been announced in May last year.

"The fact the company has got the deal across the line in the new political environment might be met with some relief. The price tag looks reasonable for a set of assets which made a modest contribution to the group. Attention may now turn to the company’s stated plan to sell its Grain LNG terminal in Kent – a proposal which attracted some controversy when it was announced over the potential impact to energy security."

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