German state to buy 25.1% stake in TenneT grid operator

The German state will buy a quarter stake in the German operations of Dutch grid operator TenneT for 3.3 billion euros (80 billion Czech crowns). It wants to strengthen state control over critical infrastructure. Reuters reported the news today, citing a company statement.

The German government and the company have agreed that Berlin will acquire 25.1 percent. The transaction concerns the German operations of the Dutch company and had been planned for a long time.

According to Reuters, the agreement marks a significant step in the German government’s efforts to gain greater influence over high-voltage grids. These are the backbone of the country’s energy supply.

The deal will be carried out through German state-owned bank KfW, which already holds minority stakes in other German transmission system operators, TransnetBW and 50Hertz. Berlin previously tried to acquire a stake in TenneT Germany, but earlier efforts failed because of budget problems.