New solution for TenneT’s capital requirements
TenneT is making the electricity grid fit for the future. Major investments will be required in the coming years to strengthen and expand the grid. This is necessary to meet growing demand for electricity, including from households and companies that want a new or higher power connection. TenneT needs capital to make these investments in the Netherlands and Germany.
In a letter sent to the House of Representatives today, finance minister Eelco Heinen and climate policy and green growth minister Sophie Hermans wrote that the Dutch government initially does not want to use Dutch taxpayers’ money for investments in Germany. Participation in TenneT Germany by private investors is currently seen as the best way of structurally solving TenneT Germany’s capital requirements. This could be done through the private sale of shares or flotation. These options will be discussed in the months ahead.
Earlier this year, it was announced that a deal for the full sale of TenneT Germany to the German state was no longer an option after Germany indicated it wanted to end the negotiations. The government has affirmed its intention to continue financing TenneT’s activities in the Netherlands and will make a decision in the spring of 2025 on the form this financing will take.
Until structural solutions are in place, the government is providing TenneT with a supplementary bridging loan of €2 billion for 2025 and €17 billion for 2026. Sums of €13 billion and €12 billion had already been made available for 2024 and 2025, respectively.
The loans give TenneT and market parties the certainty they need to continue investing in vital grid improvement projects over the next two years. The loans thus also play a major role in making a successful energy transition possible. TenneT will not need to use the supplementary loan if structural solutions to meet its financing requirements are implemented in a timely manner.