Germany wants to secure control over its grid: plans to buy a stake in TenneT

According to a new government strategy, Germany intends to sign an agreement to buy a 25.1% stake in German transmission system operator TenneT in the first months of 2026. The government wants to strengthen Germany’s influence over key energy infrastructure. A total of 5.8 billion euros has been earmarked for the purchase, alongside further investment commitments as part of capital increases in 2026–2029. The acquisition is to be made through state-owned bank KfW.

The German government plans to sign an agreement to buy a 25.1% stake in TenneT Germany early in 2026. According to a letter from the Ministry of Industry to the federal finance committee, 5.8 billion euros is to be earmarked for the purchase, with further payments related to capital increases planned for 2026 to 2029.

TenneT Germany is the largest of Germany’s four transmission system operators, managing more than 14 000 km of transmission network in the country. In September 2025, the Dutch government sold a 46% stake in the company to a consortium comprising Dutch pension fund manager APG, Singapore’s sovereign wealth fund GIC and Norges Bank Investment Management (NBIM), the operator of the world’s largest sovereign wealth fund, for up to 9.5 billion euros.

Strengthening control over key infrastructure

The German state aims to strengthen its control over key infrastructure amid the energy transition and the need to develop the grid as the share of renewables in electricity generation grows. Through state-owned bank KfW, Germany also holds minority stakes in other German transmission system operators, TransnetBW and 50Hertz. The letter states that there are currently no plans to buy a stake in Amprion, Germany’s remaining transmission system operator.

The government aims to sign the agreement early next year and complete the transaction by the second quarter of 2026, depending on the progress of negotiations.

“The aim is to complete the transaction quickly while carrying out the necessary due diligence,” the letter dated 13 November states.

The investment is particularly important for Germany in terms of securing financing for the development of the transmission system needed to integrate renewable energy sources. TenneT Germany faces extensive investment in the coming years to expand the grid and stabilise the operation of the transmission system. By buying a stake, the state wants to ensure that these investments are made in the public interest and support the transformation of Germany’s energy sector.

The development of Germany’s transmission system is also important in connection with the German government’s plan to preserve a single German bidding zone. Bottlenecks in Germany’s transmission system led to a recommendation to split the German bidding zone in an analysis of bidding zone configuration prepared by European transmission system operators.