TenneT to receive €25 B loan for grid expansion
Pending further developments, TenneT and the Dutch state have made arrangements regarding a shareholder loan facility of €25 billion.
Image for illustration purposes.
The Netherlands, Arnhem: Pending further developments, TenneT and the Dutch state have made arrangements regarding a shareholder loan facility of €25 billion.
TenneT has announced that the loan facility is subject to a customary parliamentary approval process which is currently in progress. Whether the company will draw under the facility will depend, amongst others, on whether and if so, when, agreement on the sale of its German activities would be reached.
Early 2023, the company announced that it intended to discuss the possibility of a sale of TenneT’s German activities on acceptable terms with the German State. Over the past year, discussions have taken place between the company 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. No agreement has been reached yet, no final decisions have been taken and there is no certainty that a transaction will materialize. TenneT said that the discussions with KfW will continue in the coming period.
TenneT reported that it has delivered around €8 billion of investments in grid expansion in 2023, almost doubling its €4.5 billion of investments in 2022. In the following years, the company expects to invest more than €10 billion in grid expansion each year.
Source: TenneT