The government now owns a quarter of Tennet Germany

July 3, 2026

Source: E & M powernews

Transaction Completed: The federal government, through the state-owned KfW Bank, has acquired a 25.1 percent stake in the transmission system operator Tennet Germany.

The purchase had been agreed upon in February; the transaction has now been finalized. On July 3, the state-owned KfW Bank, acting on behalf of the federal government, acquired a 25.1 percent stake in Tennet Germany from the Dutch company Tennet Holding, according to the Federal Ministry for Economic Affairs and Energy (BMWE). As a result, the government now holds stakes in three of the four German transmission system operators.

According to the ministry, the completion of the transaction required, among other things, antitrust approval from the European Commission and recertification by the Federal Network Agency. On June 9, after reviewing the unbundling requirements, the agency decided to recertify Tennet Germany. With the completion of this process, the regulatory requirements for the change of ownership were met.

On June 30, the Norwegian sovereign wealth fund NBIM, the Dutch pension investor APG on behalf of the ABP pension fund, and the Singaporean sovereign wealth fund GIC completed their investment in the German company Tennet. Their combined stake is set to rise to 46 percent by 2029.

According to reports from Berlin, the federal government is acquiring its stake at the same valuation as the co-investors. In February, KfW Bank put the purchase price at 3.3 billion euros. The remaining shares will continue to be held by the Dutch company Tennet Holding.

“With today’s completion of the transaction, we are securing the expansion of the power transmission grid as critical infrastructure and strengthening Germany as a business location,” Federal Minister of Economics Katherina Reiche (CDU) is quoted as saying in a ministry statement.

“I welcome the fact that, in addition to KfW, three private investors are also acquiring shares in Tennet Germany. This is also a reflection of Germany’s attractiveness as an investment destination.” With this ownership structure, Germany’s largest transmission system operator is well-positioned for the future. The new ownership structure is intended to secure long-term financing for grid expansion.

Tennet Germany operates Germany’s largest electricity transmission grid, with more than 14,000 kilometers of transmission lines. The company employs more than 5,000 people.

Through KfW, the federal government already holds a 20 percent stake in 50 Hertz and a 24.95 percent stake in Transnet BW.

Author: Manfred Fischer