May 20 (Renewables Now) - The German government could buy a minority stake in Tennet Holding BV, the transmission system operator (TSO) that is owned by the Dutch Ministry of Finance but has activities in both the Netherlands and Germany.
The two states will be discussing in the coming months a closer energy cooperation in the areas of grids and power transmission that could include Germany’s equity participation in either TenneT Holding or TenneT Germany. The negotiations would reflect the substantial additional funds that will be required by 2029 to implement the company’s planned investments in the German-Dutch transmission network.
The governments of the two countries have also entered into a Joint Declaration of Intent (JDI) to stress the mutual political interests. This document includes arrangements to expand the existing energy collaboration and stipulates that “each state will only contribute equity to finance TenneT's investments in its own country.”
TenneT said in a statement it strongly supports the exclusive talks between the two nations.
“In fact, if the two governments, who will perhaps both soon be shareholders in a single, cross border and integrated TenneT, work more intensely together, the energy transition in Northwest Europe could prove cost efficient,” the company added.
According to TenneT, all parties seek to reach an agreement by the end of 2020.
The TSO also noted that it has decided to issue green hybrid bonds this year, of which 50% will be regarded as equity. In this way, the company will ensure a good credit rating for 2021.