The Netherlands will offer additional financial aid of one billion to Tennet.
The Dutch administration is offering a billion-euro loan to Tennet, a state-owned power grid manager that also operates in Germany. Tennet is set to acquire a 19 billion euro loan to finance essential investments in 2025 and 2026, as stated by the government in The Hague. These funds will not be utilized in the German segment of their operations.
Tennet is one of the vital transmission system operators in Germany. Initially, the German government had intentions to acquire Tennet's German division from the Netherlands, but financial constraints arose following a significant court ruling on the Climate and Transformation Fund. A resolution is yet to be found.
To compensate for the delay in structural adjustments, Tennet is now receiving an additional 2 billion euros in loans for 2025, and an additional 17 billion euros in 2019, as announced by the Dutch government. They mentioned, "Primarily, the government aims not to utilize Dutch taxpayers' funds for the German portion."
As for the German operation, "Private investor involvement in Tennet Germany is currently viewed as the most viable structural solution to satisfy Tennet Germany's capital requirements." This could potentially be achieved through "a private share offering or an IPO." Negotiations between The Hague and Berlin are scheduled for the upcoming months.
The Dutch government is providing a billion-euro loan to Tennet, a company based in The Netherlands, which is known for its operations in Germany. Despite financial constraints, the initial plan of the German government to acquire Tennet's German division from the Netherlands has yet to be resolved.
