News
09 Jun 2022, 13:35
Jessica Bateman

German govt considering minority stake in grid operator TransnetBW - media

Frankfurter Allgemeine Zeitung / Reuters

The German government is considering taking a minority stake in the Baden-Württemberg transmission grid operator TransnetBW via state-owned development bank KfW, according to an article in the Frankfurter Allgemeine Zeitung based on reporting by Reuters. Transnet’s parent company EnBW has been seeking co-investors since February to shoulder the major investments necessary for the expansion of the power grid, although it intends to remain the majority stakeholder. Although neither the federal ministry of economics or EnBW have confirmed the possibility of a KfW bid, company sources told Reuters that a minority stake alongside a second financial partner is the “preferred solution.” It would be the second state investment of this kind after KfW bought into the East German grid company 50Hertz four years ago, in order to prevent the Chinese state-owned electricity company SGCC from entering the market. It is unclear whether a Chinese company has applied for a stake in TransnetBW.

Germany's four transmission grid operators are tasked with expanding the country's power grid to enable an increased use of renewable energy sources, in particular wind power from the north of the country that is needed in the industrial centres of the south. However, many of the new lines are behind schedule because of long planning procedures.

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