The German government and TenneT are currently discussing the acquisition of the company’s German operations to accelerate the country’s energy transition. Discussions have been ongoing since October 2022, and TenneT recently announced its intention to explore the possibility of a full sale of its German operations.
Investing in the electricity grid to reach the 80% renewable electricity target
The German government has set an ambitious target of 80% renewable electricity in its energy mix by 2030. To achieve this, Germany must expand its network of high-voltage lines to transport renewable energies, whose production is much more decentralized than the infrastructure dedicated to fossil fuels. The acquisition of TenneT’s German operations would allow Germany to invest in its own power grid to accelerate the energy transition.
According to the German press, the cost of acquiring TenneT’s German operations could amount to between 18 and 20 billion euros for Germany. The new equity requirements of the German operations currently amount to 15 billion euros, according to TenneT.
The importance of TenneT in the German power grid
TenneT is the largest of the four transmission system operators in Germany, ahead of Amprion, 50Hertz and Transnet BW. The company also has significant investment needs in the Netherlands, which is developing its wind and solar energy capacity.
In a context of infrastructure development for the energy transition, the Dutch and German governments prefer to finance, control and own their own national power grids, TenneT points out in its release. Although the Dutch government has not yet made a final decision, discussions are continuing.
