In a move that could reshape Germany’s energy landscape, The Netherlands is on the brink of finalizing a deal to sell TenneT Holding’s power grid in Germany to the government in Berlin. The purchase is expected to be facilitated through the German state bank KfW, which would later sell the asset to private investors. However, Berlin intends to maintain a long-term blocking minority stake.
Sources close to the negotiations have indicated that an announcement could be imminent, with one source suggesting that the deal could be sealed in a matter of days. Despite the apparent progress, there remains a possibility that the talks could collapse, cautioned the sources.
The potential deal follows reports at the impending agreement. Last year, sources had estimated the value of TenneT’s German assets to be between 20 billion to 25 billion euros ($27.36 billion).
Both the Dutch and German governments have been tight-lipped about the negotiations. When approached by Reuters, the Dutch government declined to comment, while the German government did not respond to requests for clarification.
The path to this deal has not been without obstacles. The German government faced a setback when the country’s constitutional court ruled that unused COVID-19 pandemic funds could not be reallocated for climate projects. This ruling could potentially complicate the financial aspect of the transaction.
If the deal proceeds as anticipated, it could have significant implications for the German energy sector, positioning TenneT as a key player in Germany’s transition to renewable energy. However, with the final details yet to be ironed out, the future of TenneT’s German assets remains uncertain.
(Source: Reuters | Bloomberg)
