Sources indicate that the Netherlands and Germany are nearing a significant agreement concerning TenneT grid operations. According to insiders familiar with the situation, the Netherlands is edging closer to finalizing the sale of Tennet Holding BV’s power grid in Germany to the German government in Berlin, following months of lengthy negotiations.
Insiders, who preferred not to be named due to the confidentiality of the discussions, suggest that details of the transaction might be revealed in the upcoming days.
The deal is estimated to be valued at approximately €22 billion ($24 billion), consisting of roughly €14 billion in debt and €8 billion in equity.
However, a key hurdle remains unresolved, primarily concerning the necessary investments required to enhance Germany’s grid infrastructure, as disclosed by one of the sources.
When approached for comments, representatives from the Dutch and German governments, as well as Tennet, opted not to provide any official statements.
Last year, discussions faced complications due to a German court ruling regarding off-budget expenditures, prompting the Berlin government to reassess fiscal strategies.
This acquisition is part of Germany’s broader initiative to consolidate its power grids and reinforce energy security, especially amidst the challenges posed by transitioning to renewable energy sources and uncertainties stemming from disruptions in Russian pipeline gas supplies.
On January 12, the Dutch government announced its decision to extend a €25 billion loan to Tennet for essential grid investments, as the fate of its German network remained uncertain.
The government clarified that this loan served as a temporary measure, bridging the gap until Tennet’s German grid is sold or alternative financing arrangements are made.
Notably, the Dutch government intends to allocate a portion of the proceeds from the sale of Tennet’s German grid towards upgrading the Netherlands’ overloaded power grid.
This move aims to mitigate risks to the growth ambitions of prominent Dutch companies like ASML Holding NV.