TenneT to receive €25 billion loan from the Dutch State to facilitate electricity grid expansion
Early 2023, TenneT announced that it intended to engage in discussions with the German State to explore the possibility of a sale of TenneT’s German activities on acceptable terms. Over the past year, constructive discussions have taken place between TenneT and KfW, acting on behalf of the German State, with close involvement of the German State and the Dutch State as TenneT's sole shareholder. To date, no agreement has been reached yet. No final decisions have been taken and there is no certainty that a transaction will materialize. TenneT and KfW continue their discussions in the coming period.
Pending further developments, TenneT and the Dutch state have made arrangements regarding a shareholder loan facility of EUR 25 billion, safeguarding TenneT's planned investments in the Netherlands and Germany for 2024/2025. The loan facility is subject to a customary parliamentary approval process which is currently in progress. Whether TenneT will draw under the facility will depend, amongst others, on whether and if so, when, agreement on the sale of TenneT's German activities would be reached.
To ensure security of electricity supply, TenneT has delivered around EUR 8 billion of investments in electricity grid expansion in 2023, which is almost a doubling of its EUR 4.5 billion investments in 2022. For the coming years, TenneT expects to invest more than EUR 10 billion in electricity grid expansion each year.
TenneT is a leading European grid operator. We are committed to providing a secure and reliable supply of electricity 24 hours a day, 365 days a year, while helping to drive the energy transition in our pursuit of a brighter energy future – more sustainable, reliable and affordable than ever before. We design, build, maintain and operate 25,000 kilometers of high-voltage electricity grid in the Netherlands and large parts of Germany, and facilitate the European energy market through our 17 interconnectors to neighboring countries. We are one of the largest investors in national and international onshore and offshore electricity grids, with a turnover of EUR 9.8 billion and a total asset value of EUR 41 billion. Every day our 7,400 employees take ownership, show courage and make and maintain connections to ensure that the supply and demand of electricity is balanced for over 43 million people.
Lighting the way ahead together