BERLIN (AP) — A Dutch state-owned company that is Germany’s largest electricity grid operator said Friday it plans to hold talks on selling all of its German operations to the government in Berlin, which has welcomed the announcement.
TenneT, which is one of four transmission network operators in Germany, has stressed the need to find a “structural solution” to the financing needs of its German business as the network is strengthened to manage the transition to renewable energy. , which he values at around 15 billion euros ($16.1 billion).
TenneT operates power grids across much of Germany, from the North Sea coast to Bavaria in the south. These transmission lines are crucial to Germany’s plans to completely shift its power generation from fossil fuels to renewable energies by 2045 at the latest.
Currently, some of the electricity produced by wind farms in the north of the country cannot be delivered to consumers in the south due to lack of transmission capacity.
The German government announced at the end of November that it was considering taking a stake in TenneT. It already owns a minority stake in rival network operator 50 Hertz, through state-owned investment bank KfW.
In a statement on Friday, TenneT said it “intends to enter into discussions with the German government, to explore the possibility of a complete sale of TenneT’s German business on acceptable terms.”
The company, which also operates the Netherlands grid, said it “recognizes that the Dutch and German governments prefer to fund, control and own their national power grid”.
In Berlin, Economy Ministry spokeswoman Beate Baron welcomed the move but did not give details of a possible deal, citing ongoing talks with the Dutch government.
“We need investment in network expansion, and we need to consider on a case-by-case basis which is the right instrument,” she said.