Dutch electricity grid operator TenneT will explore the possibility of a full sale of its German operations to the German state to ensure sufficient investment in networks in both the Netherlands and Germany, it said on Friday.
TenneT, which operates the Dutch high-voltage grid and part of the German grid, will need billions of euros in the coming years to meet investment needs as Germany and the Netherlands expand their wind and solar power capacity.
German government sources last November said Berlin wants to buy either a majority stake or all of the German subsidiary of TenneT, which is fully-owned by the Dutch state, as part of Germany’s planned transition towards sustainable energy use.
Germany, meanwhile, is tightening its grip on critical energy infrastructure after the suspension of gas deliveries from Russia.
Germany’s Economy Ministry, which is in charge of the country’s energy sector, on Friday said it welcomed the move by TenneT, adding that talks were ongoing and constructive.
TenneT “acknowledges that both the Dutch and German government prefer to fund, control and own their national electricity grid”, the company said.
“Motivated by their climate ambitions and geopolitical developments, both governments are heavily focusing on infrastructure development for the energy transition.”
TenneT said its German division required 15 billion euros ($16 billion) in equity, a hefty price tag for Berlin, which has already spent hundreds of billions of euros to soften the impact of the energy crisis on its citizens and economy.
The Dutch government has repeatedly said it would only provide capital for Dutch operations and signed an agreement with Germany in 2020 to explore a TenneT stake sale to help to fund the company’s ambitious investment plan.
But talks stalled in 2021 over the question of who would control the company’s German subsidiary.
Dutch Finance Minister Sigrid Kaag last November said she expected a decision on a possible investment by Germany early in 2023.
TenneT said it would now engage in discussions with Germany on issues such as security of supply and the effects of a sale on employees, customers and other stakeholders.
The grid operator said the Dutch government had made no final decision yet.
Source: Reuters.com