Dutch and German governments appear to be close to an agreement on the Tennet network

Close to the decision to sell to the Tennet Holding electricity network BV is located after months of prolonged negotiations, according to Bloomberg’s information. It is possible that within the next few days the details of the transaction will be announced over the next few days. The Netherlands-Germany agreement could be valued at around 22 billion euros (24 billion dollars) which includes around 14 billion euros in debt and 8 billion euros in shares, according to Bloomberg. One last point of engagement relates to the investment needed to improve Germany’s networks, according to the same sources. The Dutch and German governments as well as Tennet refused to comment. Discussions were complicated last year by a German court decision on out-of-budget spending, which forced the Berlin Government to adjust the budget plans. The acquisition is part of Germany’s efforts to unify the country’s electricity networks and strengthen energy security. Europe’s largest economy faces a difficult transition to renewable energy sources, as well as the uncertainty caused by the loss of Russian gas from pipelines. Much of the German electricity network is operated by Dutch – government wants to put the network under domestic control The Dutch Government stated on 12 January that it would lend Tennet EUR 25 billion for the necessary investments in the network, as the sale of its German network remained on the air. The government then signaled that the loan was not a long-term solution, but offered a bridge until Tennet’s German network was sold or another funding solution was found. The Dutch Government wants to use part of the proceeds from the sale of Tennet’s German network to upgrade the overcharged electricity network of the Netherlands, which has jeopardised the development ambitions of some of its largest companies, including ASML Holding NV.

Exit mobile version