New ownership structure at TenneT Germany: KfW acquires stake in power grid operator
The Dutch power grid operator TenneT has implemented a fundamental change to its ownership structure in Germany. As the company announced, the process for new equity transactions has been successfully completed. This process involves international investors as well as the German state-owned development bank KfW.
KfW is acquiring a 25.1 percent stake in the German subsidiary TenneT Germany. This decision is of great significance for the German energy supply, as TenneT is one of the four major transmission system operators in Germany. The state's entry is intended to ensure the stability and expansion of the power grid in the long term.
In addition to KfW, international partners such as APG, GIC, and NBIM are investing a sum of up to 9.5 billion euros in the company. These investments are necessary to cover the high costs for power grid expansion incurred in the course of the energy transition in Germany. The power grid must be modernized to be able to accommodate more renewable energies such as wind and solar power.
With the completion of these transactions, the financing for the coming years has been placed on a broader basis. The Federal Government is thereby underscoring its goal of bringing critical infrastructure in Germany more firmly under state control or, at the very least, monitoring it more closely. The new ownership structures are now intended to provide greater planning security for upcoming grid expansion projects.