Federal government takeover of grid operator Tennet falters, leaving national treasury in perilous condition
Germany's largest transmission network operator, Tennet, oversees a major North-South corridor stretching from the North Sea to the Austrian border. This means a substantial chunk of the funding for network expansion, particularly the key North-South corridors, needs to be hashed out with the Dutch government. Consequently, the federal government was keen on nationalizing the company.
However, Tennet expressed its intentions to secure funds for network expansion through "tapping into public or private capital markets." The federal government indicated its readiness to back such alternative solutions, according to the company.
Energy Minister of Schleswig-Holstein, Tobias Goldschmidt (Greens), voiced his disappointment over the collapsed takeover talks. "This is another illustration of how the debt limit is a hindrance to the future," he stated. "A state intervention at Tennet would have been right from a climate policy standpoint. It was also absolutely essential from a safety and economic policy viewpoint."
Likewise, Stefan Körzell, a member of the German Trade Union Executive, shared his thoughts: "The federal government taking over Tennet would have been key in pushing network expansion." He pinned the blame on the "budget chaos instigated by the FDP" for this, asserting that "Germany should no longer be held back by it."
