TenneT Considering Sale of German Activities to German State

TenneT is investigating the possible sale of its German activities to the German state in order to achieve the energy transition objectives, the Dutch-German transmission system operator (TSO) said.

In recent years, TenneT has developed into the world’s largest investor and operator of offshore wind energy transmission networks. The acceleration of grid expansion, onshore and offshore, requires unprecedented capital investments from TenneT, the company said.

TenneT’s capital investments are mainly financed by debt capital, with TenneT being the largest issuer of green bonds in the EU, and by equity to maintain a strong creditworthiness.

TenneT’s capital needs for this decade are increasing and TenneT has found that the Dutch government prefers to finance TenneT’s Dutch activities, currently estimated at around EUR 10 billion, while seeking a structural solution to the capital needs for TenneT’s German activities, currently estimated at around EUR 15 billion.

TenneT currently manages the Dutch high-voltage grid and part of the German high-voltage grid, but notes that both the Dutch and German governments prefer to finance, control, and own their national electricity grid.

Motivated by their climate ambitions and geopolitical developments, both governments focus strongly on the development of infrastructure for the energy transition, TenneT said.

In light of this and TenneT’s assessment of possible scenarios, TenneT intends to enter into discussions with the German authorities to explore the possibility of a full sale of TenneT’s German activities on acceptable terms.

Such a transaction would make it possible to create two strong national players that will continue to work together in driving the energy transition, the TSO said.

TenneT acknowledges that its sole shareholder, the Dutch government, has not yet taken a final decision and TenneT will take the next steps in close cooperation with the government. In the upcoming discussions, TenneT said it would continue to focus on safeguarding the security of supply and the interests of its employees, customers, suppliers, financiers, and other stakeholders.

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