Grid operator Tennet has held discussions with the federal government regarding sales, but thus far, no outcomes have been achieved.
Dutch company Tennet, which manages the grids in the Netherlands and Germany, is now seeking alternative funding sources as negotiations with the German government over a potential takeover of the German transmission grid have not been fruitful. Tennet's Dutch headquarters made this announcement on Thursday, stating that the investment needed for the expansion of its grids in both countries until 2033 could reach up to 160 billion euros.
Tennet acquired the German part of its grid from Eon DE000ENAG999 back in 2010. While the Dutch state owns the parent company, the cost of expanding the German grid has become increasingly burdensome. In February 2023, Tennet publicly expressed its interest in the German government taking over its German transmission grid. The Dutch government had already expressed its preference for this back in 2020.
A spokesperson for the German Federal Ministry of Economics declined to comment on Tennet's announcement. "The federal government and the Dutch government are still in negotiations regarding the purchase of TenneT Deutschland," they stated.
To cover its massive financial needs, Tennet plans to use both loans and increased equity. The company is exploring the possibility of bringing in investors or holding an IPO (Initial Public Offering), as mentioned in the press release.
The German transmission grid, consisting of high-voltage lines, is managed by four different grid operators. Tennet is responsible for the largest of these four zones, spanning from the North Sea to the Austrian border. The German subsidiary is headquartered in Bayreuth. The German government initially supported the proposal.
Tennet moved quickly to allay fears that the unsuccessful talks with the federal government could endanger the expansion of the grid. According to Tennet, the funds needed for this year and next year are already covered by a 25 billion euro loan provided by the Dutch government as a shareholder. They remain committed to their planned investments in Germany and the Netherlands.
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- In response to the lack of progress in sales talks with the German government, Tennet is considering alternative funding sources, such as loans and increased equity, as well as exploring the possibility of bringing in investors or holding an IPO.
- To find potential sources of money, Tennet is engaging in sales talks with various network operators, including discussions about a potential covenant that could ensure a stable supply of funds.
- Despite the unsuccessful talks with the German government, Tennet remains committed to its planned investments in Germany and the Netherlands, with the necessary funds for this year and next year already secured through a 25 billion euro loan provided by the Dutch government.
Source: www.ntv.de
