Dutch transmission system operator (TSO) TenneT is considering selling all of its German business as grid expansion in the course of the energy transition in the neighbouring country will require about EUR 15 billion (USD 16.1bn) in investments.
TenneT, which is owned by the Dutch government, said on Friday that it plans to enter into talks with the German government "to explore the possibility of a full sale of TenneT’s German activities on acceptable terms".
The company operates 24,500 km (15,224 mi) of the high-voltage electricity grid in the Netherlands and large parts of Germany where its network covers areas from the North Sea to the Austrian border in the south.
The operator noted that its equity need is rising as the accelerated deployment of renewable energy requires a rapid grid expansion. The investments in the grid on the home market estimated at about EUR 10 billion will be supported by the Dutch government and a solution is now sought for the operations in Germany.
The Dutch government has, however, not made a final decision on a sale.
TenneT funds its rising capital investments through debt and equity. In October 2022, it issued a senior green bond of EUR 3 billion to fund green power transmission projects in the Netherlands and Germany amid plans to build more than 5,000 km of onshore grid connections in the two countries. The operator has also a 7.2-GW connection capacity in the German waters of the North Sea and around 2.8 GW off the Dutch coast.
(EUR 1 = USD 1.077)
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