Investment in US renewable energy, as a share of total infrastructure deals, has fallen from 51.6% in 2020 to 37.7% last year
London-listed National Grid has sold its US onshore renewables business to Brookfield Asset Management for $1.7bn.
The sale is set to close in the first half of the 2025/2026 financial year and is part of the National Grid’s plan to streamline its business, fund investments, and deliver the ‘Great Grid Upgrade’ in the UK, the company said in a statement.
The US renewables business develops, constructs, owns, and operates solar assets, wind farms, and battery storage facilities across the US. It currently has 1.8GW in operation and 1.3GW under construction.
February 24, 2025 (Preqin News) – Alternative asset manager Brookfield continues to acquire renewable energy assets despite political uncertainty, as evidenced by the new US administration terminating the Green New Deal and encouraging oil, natural gas, and coal exploration. However, it is yet to roll back tax credits enacted by former President Joe Biden’s Inflation Reduction Act.
Over the past 12 months, Brookfield has invested over $1bn in Florida-based renewables platform Origis, $1.1bn for Texas-based sustainable fuels company facility Project Roadrunner, and up to $1.1bn in California-based e-fuels start-up Infinium.
Infrastructure deals in energy completed over the past 10 years show an average IRR of 15.8% and a median of 11.6%, based on an assessment of 120 deals in North America, according to Preqin Transaction Intelligence. This is higher than the 10-year horizon IRR for infrastructure funds of 9.4%.
There were 325 US renewable energy infrastructure deals in 2020, accounting for 51.6% of the total infrastructure transactions by volume. Since then, deal activity by number and as a proportion of deals has declined, with 178 renewable investments accounting for 37.7% of total volume of 472 infrastructure deals last year.
Taking the wind out of green investment
Volume of US infrastructure and renewables deals by sector, and renewables as a share of total infrastructure deals, 2020–2024
Source: Preqin Pro. Data as of February 2025
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