Federal Government Acquires Stake in Tennet Germany: 25.1 Percent Participation Signed via KfW

Frankfurt / Bayreuth (Germany) - The German federal government is acquiring a 25.1 percent stake in Tennet Germany via the state-owned development bank KfW. The move marks a strategic step to secure the multi-billion-euro expansion of the power grid and strengthens state influence over critical energy infrastructure in Germany.

With the signing of the contract on February 3, the federal government gains co-determination rights at Germany’s largest electricity transmission system operator. The investment is made on the same terms as those granted to private investors and remains subject to regulatory approvals.

Strategic federal entry secures influence and financing

On behalf of the federal government, KfW has signed the agreement to acquire a 25.1 percent stake in Tennet Germany from the Dutch Tennet Holding. The transmission system operator runs Germany’s largest electricity transmission network, spanning more than 14,000 kilometers of lines, and plays a central role in expanding renewable energy and integrating offshore wind power.

Through this minority stake, the federal government gains participation rights in management and business planning, as well as the right to appoint voting representatives to shareholder and supervisory bodies. Federal Minister Katherina Reiche emphasized the energy-policy context: “Achieving our goals in energy policy depends on an expansion of the electricity grid according to demand. By entering TenneT Germany, the German government helps to secure the multi-billion capital needs in the coming years. This investment in tomorrow’s infrastructure strengthens Germany.”

Financially, the acquisition is backed by a federal risk assumption, without funds flowing directly from the federal budget. However, KfW’s refinancing and administrative costs will be covered by the budget. The Bundestag’s Budget Committee released the necessary funds in mid-January 2026. The appropriateness of the purchase price was confirmed by two fairness opinions and an economic viability assessment.

Investor structure, valuation, and timeline through 2026

The federal government is acquiring its stake on the same valuation basis as the private co-investors. Specifically, this involves a purchase price of approximately €3.3 billion. Back in September 2025, the Norwegian sovereign wealth fund Norges Bank Investment Management, the Dutch pension fund APG, and Singapore’s sovereign wealth fund GIC announced plans to acquire up to 46 percent of Tennet Germany by 2029, committing capital injections of up to €9.5 billion.

Tennet CEO Manon van Beek welcomed the government’s entry: “The German state represents one of the most important stakeholders for TenneT in Germany. This co-shareholding creates valuable additional involvement, with particular attention to the increasing investment agenda and the new geopolitical reality. TenneT remains committed to ensuring a reliable, sustainable and affordable electricity supply.”

In the long term, Tennet Holding’s stake is expected to be diluted to 28.9 percent, while it will remain involved in all key decisions. Synergies between Tennet Netherlands and Tennet Germany are to be preserved, particularly in the joint development of offshore wind infrastructure in the North Sea. The direct acquisition by KfW also enables the repayment of a shareholder loan from the Dutch state amounting to approximately €3.3 billion.

Completion of the transaction is still subject to regulatory approvals and is expected no later than the third quarter of 2026. In addition to existing KfW stakes in 50Hertz and TransnetBW, the federal government would then hold interests in three of Germany’s four electricity transmission system operators.

Source: IWR Online, 05 Feb 2026