Germany in talks to buy stake in Dutch grid operator TenneT

The German government desires to acquire either a controlling interest or the entire stock of TenneT, the Dutch company that operates the country’s electrical grid.

Reuters reported that the sale negotiations between Germany and the Netherlands, which had stopped last year, are moving forward and should be completed in the first half of 2023.

TenneT’s owner, the Netherlands, and Germany reached an agreement in May 2020 to investigate the possibility of selling a portion of TenneT in order to support the company’s ambitious investment plan, which might total up to 50 billion euros over the next ten years.

The expansion of wind and solar energy in Germany and the Netherlands will boost TenneT’s investment requirements; the push for offshore wind in particular will result in high connection costs to bring it onshore.

In order to give time to look for alternatives in the event that the German state decides against investing, a decision on a potential investment by Germany is anticipated early in 2023.

Image source: TenneT

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