TenneT, the Dutch state-owned grid operator, has agreed to divest 46% in its unit TenneT Germany to major institutional investors for up to $11.2 billion (9.5 billion euros), the company, whose sole shareholder is the Dutch state, said on Wednesday.
With the deal, TenneT and the Dutch state secure the equity requirement for the expansion of TenneT Germany’s high-voltage grid, the operator said.
The three large institutional investors are APG, investing on behalf of Dutch pension fund ABP, Singapore’s sovereign wealth fund GIC, and Norges Bank Investment Management (NBIM), the manager of Norway’s oil fund, which is the world’s largest sovereign wealth fund.
“TenneT Germany’s transmission grid is essential for delivering renewable energy where it’s needed in Europe’s largest economy,” said Harald von Heyden, Global Head of Energy & Infrastructure at NBIM.
Completion of the transaction is subject to customary conditions, including regulatory clearances, and is expected to take place in the first half of 2026.
Additionally, the German state has expressed interest in a potential investment in TenneT Germany, and both TenneT and the Dutch state have indicated they are open to this, the Dutch grid operator said. Accordingly, TenneT intends to engage in discussions with Kreditanstalt für Wiederaufbau (KfW), acting on behalf of the German state, regarding a potential investment by KfW in TenneT Germany alongside TenneT and the institutional investors.
Institutional infrastructure investors are considering Europe’s grids and power lines, thanks to the EU’s push to net zero and increased solar and wind capacity that needs to connect to the grid infrastructure, analysts and investment managers have told Reuters Events recently.
The EU has vowed to address deficiencies in the grid infrastructure, laid bare earlier this year by the worst blackout Europe has seen in modern times, when Spain and Portugal were left without electricity for hours in late April.
The European Commission will address critical grid bottlenecks in European electricity infrastructure in a bid to avoid spiking power and energy costs, European Commission President Ursula von der Leyen said last week.
The European Commission has estimated that $2.36 trillion (2 trillion euros) to $2.7 trillion (2.3 trillion euros) is required to meet grid needs until 2050, a review of the EU’s electricity grids by the European Court of Auditors showed earlier this year.
By Michael Kern for Oilprice.com
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