The expansion of the electricity grids in Germany costs billions. The Dutch grid operator Tennet therefore wanted to sell its electricity grid in Germany to the federal government. But that is now not going to happen.
Negotiations on the sale of the electricity network of the Dutch operator Tennet in Germany to the federal government have failed.
Tennet announced that negotiations between Tennet Holding and the state development bank KfW on behalf of the Federal Republic of Germany regarding a complete sale of Tennet Germany had ended without result. The federal government had informed the Dutch state that it could not carry out the planned transaction due to budgetary problems.
Tennet is now looking for other sources of money. As the company announced, Tennet Holding is preparing to use public or private capital markets to find a structural financing solution for its German activities. The federal government is prepared to support such alternative solutions.
It was further stated that in the meantime, Tennet is sticking to its extensive investment plans in both countries and is being supported by the Dutch state, which recently granted Tennet a shareholder loan of 25 billion euros for 2024 and 2025.
In view of the billion-dollar deficit, difficult negotiations are currently underway within the federal government over a draft for the 2025 federal budget and medium-term financial planning. Several departments do not want to comply with the austerity targets set by the Ministry of Finance.
High costs for network expansion
The owner of Tennet’s parent company is the Dutch state, which has found the costs of expanding the network in Germany too expensive. The company has therefore made public its desire for the federal government to take over its German transmission network.
FDP energy politician Michael Kruse said: “The Dutch desire to withdraw from the German power grid is a clear alarm signal. If even democratic states are no longer prepared to invest in the grid in Germany under the current conditions, then that says a lot about the current investment climate in Germany and why an economic turnaround is urgently needed.”
Tennet is one of four German transmission system operators. Tennet operates the network in the largest of four zones. The area stretches from the North Sea to the Austrian border. As part of the energy transition, thousands of kilometers of new power lines must be built so that the wind power produced primarily in the north can reach large consumption centers in the south. This costs many billions. Tennet took over the German part of its network from Eon in 2010.
Source: Stern
