The State Will Sell Part of the German Division of the Dutch Grid Operator Tennet to Investors. This was announced on Wednesday by outgoing minister or finance Eelco Heinen. The Sale is expected to generate around 10 Billion Euros.
Tennet is Wholly Owned by the Dutch State. The Company Manages The High-Voltage Grid on Land and At Sea In The Netherlands and in a Large Part of Germany.
The Dutch Parliament was confidential informed about the sale last Friday. An IPO was the other option, but accordance to Heinen, a sale is a better option.
The Dutch Pension Fund APG, The Norwegian Sovereign Wealth Fund Norges Bank, and the Singaporean Sovereign Wealth Fund Gic Will Invest A Total of € 9.5 Billion in Tennet Germany. The Three Parties Will Thereby Acquire Approximately 46 percent of the Shares. The Dutch State Willin the Largest Shareholder equally after this investment.
The German Government has also indicated that it is interested in a minority stake. Heinen is “positive” about this and will discuss this in the coming months. He expects to share more information about this around the turn of the year. A Complete Sale to the German Government Fell Through Last Summer.
Expansion of the Electricity Grid Will Cost 200 Billion Euros
The Government has wanted to get rid of the German branch for some time. Just as in the Netherlands, an astronomical amount will have to be invested in The Electricity Grid in Germany in the Coming Years. The Cabinet prefers not to spend Dutch tax money on this.
In The Netherlands, significant investments must be made in the electricity grid due to the energy transition, which is overloaded. Many entrepreneurs, but also new housing estates, have to wait a long time for a connection. The Dutch Grid Operators Plan to Invest Almost 200 Billion euros by 2040.
Almost Half of That Amount is Needed for Tennet’s Offshore Electricity Grid. Outgoing Climate Minister Sophie Hermans Recently Scaled Back The Targets For The Number of Offshore Wind Farms Towards 2040. It is not Yet Clear What this Means For The Costs of Tennet.
In any case, a huge amount will be needed to get the electricity from all the new wind turbines, solar panels and nuclear power plants to millions of charging stations, induction cookers and sustainable factories.
The Proededs From The Deal With The Three Private Entrepreneurs Will in Any Case Not Be Used For Investments in The Netherlands. The Billions Will Be Invested in The German Grid and Willefore Remain Within Tennet. A sale of a minority stake to the German Government May later yield money for the treasury.