Two of Germany’s largest public utility companies have had to postpone multi-billion-euro transactions due to the government’s inability to take over the German branch of Dutch electricity network operator TenneT, Bloomberg news agency reported on Wednesday.
TenneT oversees the Dutch electricity network, and manages thousands of kilometres of high-voltage cables in Germany. The Dutch government was hoping to sell its German operations to fund improvements in the Dutch network. However, in June, German Chancellor Olaf Scholz admitted that a complete buyout would not be financially feasible for Berlin.
This stalemate is also affecting other negotiations. Energy companies EnBW Baden-Württemberg and RWE intended to sell their shares in the German electricity networks to finance significant energy-transition investments. However, they are now forced to delay these sales. Both companies declined to comment, Bloomberg reported.
Germany’s ambition is to merge the country’s four major electricity transmission network operators: TenneT, 50Hertz, Amprion, and TransnetBW. This goal is part of a broader plan to achieve carbon neutrality by 2045, a goal that remains uncertain.
The German government has, however, shown openness to hold discussions with its Dutch counterpart with regard to acquiring a minority stake in TenneT’s German branch.
Belgian electricity system operator Elia is also operating in Germany through 50Hertz.
