TenneT prepares to sell German part of transmission grid facing major investment needs

Dutch company TenneT has announced that it will separate its operations in the Netherlands and Germany to enable the necessary growth and a potential sale of the German part of the transmission system it operates. The announcement comes a few months after talks between the Netherlands and Germany on the sale of these assets fell through. Reuters reported.

TenneT is one of four transmission system operators in Germany and is responsible for a large part of the transmission grid in the north, centre and south of the country. It is a key player in developing and building north-south transmission links designed to carry electricity from the country’s windy north to its industrial south.

Like other German transmission and distribution system operators, the company faces a huge investment plan, which must be carried out to integrate additional renewable energy sources and ensure the successful transformation of Germany’s energy sector.

Germany announced in 2020 that it wanted to acquire a stake in TenneT, but talks soon stalled. Repeated efforts to acquire TenneT’s German assets ended in June this year, when Germany had to abandon the plan due to its tight state budget.

The Netherlands is nevertheless continuing to prepare for the sale of TenneT’s German transmission business, and according to Reuters, a sale to private investors is also being considered. The first step is to split TenneT into Dutch and German entities, effective 1 January 2025. Current Chief Operating Officer Tim Meyerjuergens has been appointed to lead TenneT’s German business.