Tenet: The federal government wouldn’t buy the power grid — investors wanted it

Bayreuth (dpa-AFX) – According to Dutch grid operator Tenet, talks on nationalizing the German electricity transmission network have failed. After more than a year of fruitless negotiations with the federal government, Tenet now wants to find new ways to finance the multi-billion-euro network expansion in Germany. This was announced by the headquarters of the Dutch company Tenet on Thursday. The company has set the capital needed to expand its networks in both countries until 2033 at 160 billion euros.

Tennet acquired the German portion of its network from Eon in 2010. Tennet’s parent company is owned by the Dutch state, but the costs of expanding the network in Germany have become too prohibitive for it. In February 2023, the company announced its desire for the federal government to take charge of its German transportation network. The Dutch government had already stated in 2020 that it favored the participation of the federal government. It was not clear from the announcement why the talks failed and why.

The enormous cash requirements must be met partly by loans and partly by increased equity. The company is now considering the entry of investors or an IPO, according to the press release.

The German transmission network – that is, the high and ultra-high voltage lines – is awarded to four grid operators. Tenet operates the network in the largest of these four regions by area, extending from the North Sea to the Austrian border. The German subsidiary is headquartered in Bayreuth. The German government initially welcomed this step.

The company tried to dispel fears from the beginning that the failure of the talks might jeopardize network expansion. According to Tenet, the funds required for this year and next are covered by a 25 billion euro loan granted by the Dutch state as a shareholder. Tenet intends to continue its planned investments in Germany and the Netherlands./cho/DP/men

(tags for translation) Markets

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