Berlin halts TenneT Germany takeover plans due to budget constraints
Development bank KfW ends talks with TenneT Holding but enormous financing needs for grid links for Germany’s 70GW offshore wind target persist
Germany has ended its talks to take over the German operations of Dutch-German transmission system operator TenneT after Berlin hit serious budget constraints, the TSO said.
“Discussions between TenneT Holding and Kreditanstalt für Wiederaufbau (KfW), acting on behalf of the German Federal Government, on a full sale of TenneT Germany ended today,” TenneT said in a statement.
“This announcement comes after the German Federal Government informed the Dutch State that it will not be able to execute the planned transaction due to budgetary challenges.”
Germany had planned to take over TenneT Germany after the country’s offshore wind ambitions increased to a target to reach 70GW of wind at sea by 2045 – a volume requiring massive financial resources.
The ruling threw Germany’s budget planning into disarray – particularly in regard to climate and energy policies – as the government simultaneously is bound to a zero-deficit rule enshrined in the constitution.
TenneT meanwhile is trying to find alternative solutions.
TenneT Holding is preparing to tap into public or private capital markets for a structural financing solution for its German operations, the company said, adding that the German government had pledged to support such alternative solutions.
The TSO said it remained “fully committed to the implementation of its major investment plans in both countries, supported by the Dutch State, which recently provided TenneT with a shareholder loan of €25bn for the years 2024 and 2025.
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