Dutch power operator TenneT Holding BV said it’s exploring a possible sale of its German business to Berlin, as the government seek ownership of the national grid to shore up energy security following Russia’s invasion of Ukraine.
(Bloomberg) — Dutch power operator TenneT Holding BV said it’s exploring a possible sale of its German business to Berlin, as the government seek ownership of the national grid to shore up energy security following Russia’s invasion of Ukraine.
While the Dutch government is happy to fund the company’s activities in the Netherlands, it’s looking for alternatives to finance the €15 billion ($16.1 billion) of equity required by the German business, TenneT said in a statement Friday.
“Both the Dutch and German government prefer to fund, control and own their national electricity grid,” TenneT said in a statement. “Motivated by their climate ambitions and geopolitical developments, both governments are heavily focusing on infrastructure development for the energy transition.”
Germany is mired in an energy crisis as it seeks to curb its dependency on Russian gas. At the same time, it’s looking to transition toward clean power to wean itself off fossil fuels and to meet ambitious climate goals.
Chancellor Olaf Scholz’s coalition government is ready to invest several billion euros for the operation to push ahead with the extension of renewable energies and the construction of new grids to stabilize the energy system, two people familiar with the talks said on condition of anonymity.
Talks among the three coalition parties are ongoing about whether the state should buy a minority stake in the German branch of TenneT, or even take over the full entity, the people added. A deal is expected to be sealed by end-June, they said.
TenneT said the Dutch government, which is its sole shareholder, has not yet taken any final decision.
–With assistance from Wout Vergauwen.
(Updates with details throughout)
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