TenneT Germany prepped for potential sale
Image courtesy 123rf
Transmission system operator TenneT has announced preparations to raise capital, either by private investment or with a potential sale of their operations in Germany.
TenneT, the sole shareholder of TenneT Germany, is preparing two options to raise equity through third party investors: either via a private investment in, or a potential listing of, TenneT Germany.
As part of the process for a private investment, TenneT published a public notice today that parties interested in a private investment in TenneT Germany are invited to contact the company’s financial advisors to receive additional information on the process.
TenneT last week announced an investment plan of €200 billion ($216.9 billion at the time) for grid expansions across their operations in the Netherlands and Germany until 2034.
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Arina Freitag, TenneT’s chief financial officer, commented: “Electricity grids are at the core if we want to meet the climate target of no more than 1.5 degrees Celsius temperature rise. TenneT‘s large scale investments in the energy transition are therefore no-regret. For more and smarter grids to be realised, we need to mobilise private capital for TenneT Germany.”
The investment plan was announced alongside the company’s results for 2024, which were below expectations, with underlying revenue decreasing to €8.4 billion ($9.1 billion at the time), compared to €9.2 billion ($9.9 billion) in 2023.
Since January 1st, TenneT has operated via two national organisations in the Netherlands and Germany to facilitate growth.
The company has long been looking to sell its German arm. Up until June 2024, the company was negotiating with German state-owned bank KfW, when discussions collapsed.
TenneT Germany is the largest of the four TSOs in Germany, based on network length as of December 31, 2024.
The company is one of the largest investors in onshore and offshore power grids in Germany, operating and maintaining a transmission grid stretching over 14,000km and connecting more than a third of the European Union’s total offshore wind capacity.
