SUBSCRIBE
PROFILE

Berlin abandons TenneT takeover for budgetary reasons

The German government has decided not to acquire the German subsidiary of TenneT, the Dutch electricity grid operator, due to budgetary constraints. This reversal complicates Germany's energy transition.

Share:

Financement transition énergétique Allemagne

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99€/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Germany’s energy transition relies on a robust infrastructure to transport electricity from wind turbines in the north to consumers in the south. TenneT, a key player in this field, is valued at around €20 billion. The takeover of TenneT Germany by the German state-owned bank KfW was envisaged as a way of strengthening this essential infrastructure. However, the negotiations ended in failure due to budgetary constraints. This decision is a significant setback for Berlin, which was counting on this acquisition to consolidate its energy projects.

Financial and political repercussions

The decision of the German Federal Constitutional Court in November 2023 created a deficit of 60 billion euros, exacerbating the budget crisis. Finance Minister Christian Lindner has stepped up austerity measures to comply with the constitutional rule limiting debt. These measures led to the abandonment of the buyout project. Robert Habeck, Minister for Economic Affairs, expressed his disappointment at the failure of the negotiations. Berlin is now considering a minority stake in TenneT via a consortium, as an alternative to a full takeover.

Financing prospects for TenneT

For TenneT Holding, this situation imposes new financial constraints. The Group must now turn to the public or private capital markets to finance its activities in Germany. The Dutch government, the main shareholder, recently granted a €25 billion loan to support the group in 2024 and 2025. This support is crucial to maintain TenneT’s operations, but the need for long-term financing remains pressing. Strengthening the electricity infrastructure is essential for Germany’s energy transition and security of supply.

Conclusion and future prospects

Berlin’s abandonment of the TenneT takeover marks a major blow for Germany’s energy transition. However, alternative options, such as a minority shareholding, offer a glimmer of hope. Cooperation between the Dutch and German governments will be crucial to finding viable financing solutions and ensuring the success of the transition to renewable energies.

  • Popular on energynews.pro
Global warming heads toward 2.5°C despite commitments
BrightNight and Cordelio Power Reach Financial Close for 300 MW Pioneer Hybrid Project in Arizona
ACWA Power signs $10bn in energy and financing deals at FII9
Washington invests $100mn to modernise coal plants as exports drop 11%
CPV secures $1.1bn funding for 1,350 MW gas-fired power plant in Texas
India reforms renewable energy market to ensure integration and reliability
India is implementing new reforms to effectively integrate renewable energy into the national grid, with a focus on storage projects and improved contracting.
China shifts to ‘High-quality’ renewable growth with new pricing mechanism following 264 GW boom in H1 2025
China added a record 264 GW of wind and solar capacity in the first half of 2025, but the introduction of a new competitive pricing mechanism for future projects may put pressure on prices and affect developer profitability.
The French State activates the IEF control on Exaion’s sale to American Mara
The government confirmed that the majority sale of Exaion by EDF to Mara will be subject to the foreign investment control procedure, with a response expected by the end of December.
Brazil Reduces Emissions by 16.7% in 2024 Ahead of COP30
A week before COP30, Brazil announces an unprecedented drop in greenhouse gas emissions, driven mainly by reduced deforestation, with uneven sectorial dynamics, amid controversial offshore oil exploration.
Angola connects 20,000 households to electricity as part of Catabola project
The Catabola electrification project, delivered by Mitrelli, marks the first connection to the national grid for several communities in Bié Province.
Algeria to launch SCADA system modernisation of national power grid in 2026
The Algerian government plans a full upgrade of the SCADA system, managed by Sonelgaz, to improve control and supervision of the national electricity grid starting in 2026.
SEEG launches emergency plan to curb energy fraud in Gabon
Facing annual losses estimated at up to $66mn, SEEG is intensifying field inspections and preparing the rollout of smart meters to combat illegal connections.
United Kingdom stays on course for 2030 despite political divisions
The British government confirms its ambition to decarbonise the power sector by 2030, despite political criticism and concerns over consumer energy costs.
Enedis commits €250mn to upgrade Marseille’s electricity network
Enedis plans a €250mn ($264mn) investment to strengthen Marseille’s electricity grid by 2030, including the full removal of paper-insulated cables and support for the port’s electrification.
G7 launches an alliance to secure critical minerals outside China
Energy ministers coordinate investment and traceability to curb China’s dominance in mineral refining and stabilize supply chains vital to electronics, defense, and energy under a common G7 framework.
Artificial intelligence fuels global energy crisis and derails climate targets
Electricity demand, amplified by the rise of artificial intelligence, exceeds forecasts and makes the 2050 net-zero target unattainable, according to new projections by consulting firm Wood Mackenzie.
Norwegian fund generates €88 billion in gains through financial markets
Norway's sovereign wealth fund generated a €88 billion profit in the third quarter, largely driven by equity market performances in commodities, telecommunications, and finance.
Germany moves to ease grid regulation to attract infrastructure investors
The German regulator is preparing a reform favourable to grid operators, aiming to adjust returns and efficiency rules from 2028 for gas pipelines and 2029 for electricity networks.
Bill Gates calls for climate priorities to refocus on human welfare
Bill Gates urges governments and investors to prioritise adaptation to warming effects, advocating for increased funding in health and development across vulnerable countries.
Malaysia strengthens public investment in gas and solar energy
The Malaysian government plans to increase public investment in natural gas and solar energy to reduce coal dependency while ensuring energy cost stability for households and businesses.
Structural imbalances hinder the efficiency of public climate finance
The study by Özlem Onaran and Cem Oyvat highlights structural limits in public climate finance, underscoring the need for closer alignment with social and economic goals to strengthen the efficiency and resilience of public spending.
ExxonMobil sues California to block climate disclosure laws
Oil major ExxonMobil is challenging two California laws requiring disclosure of greenhouse gas emissions and climate risks, arguing that the mandates violate freedom of speech.
Norway prevails at ECHR over offshore oil licensing dispute
The European Court of Human Rights ruled that Norway’s deferral of a climate impact assessment did not breach procedural safeguards under the Convention, upholding the country’s 2016 oil licensing decisions.
Singapore invests heavily in civil nuclear power and regional energy networks
Singapore strengthens its energy strategy through public investments in nuclear, regional electricity interconnections and gas infrastructure to secure its long-term supply.
Gabon invests FCFA560bn to regulate its gradual exit from oil
As oil production declines, Gabon is relying on regulatory reforms and large-scale investments to build a new growth framework focused on local transformation and industrialisation.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

START - 99€/year

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.