TenneT examines possibility of selling German operations to German government

TenneT wants to talk to the German government about the potential of selling all of its operations in Germany on fair terms.

The establishment of two powerful national players who would continue to work together to advance the energy transition would be made possible by such a deal.

TenneT is advancing the energy transition while running a linked grid with the highest level of supply security. TenneT has grown into the world’s leading investor and operator of offshore wind transmission lines in recent years.

TenneT accepts that the governments of the Netherlands and Germany desire to fund, manage, and own their own national electrical grids while still operating the Dutch high voltage grid and a portion of the German high voltage grid. Both governments are putting a lot of effort into developing the infrastructure needed for the energy transition, driven by their shared climate aspirations and geopolitical developments.

Equity requirement

Onshore and offshore grid expansion is accelerating quickly, necessitating significant capital commitments from TenneT. To keep a good credit rating, TenneT finances its capital investments mostly using debt (it is the largest EU Green Debt issuer) and stock. The Dutch government prefers to fund TenneT’s Dutch operations, which are currently estimated to cost around EUR 10 billion. TenneT has taken note of this preference and is looking for a structural solution to address the equity requirement for TenneT’s German operations, which is currently estimated to cost roughly EUR 15 billion.

TenneT is aware that its sole stakeholder, the Dutch government, has not yet made a final decision. It will work closely with the government to take the following steps. The interests of TenneT’s staff, clients, vendors, financial backers, and other stakeholders will continue to be prioritized in the negotiations that will follow.

Image source: TenneT

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