German government takes stake in TenneT: KfW acquires 25.1 percent of largest grid operator

The contract for KfW's entry into Tennet had been signed in early February. According to the ministry, the federal government paid around 3.3 billion euros for the stake. The remaining stake remains with the Dutch Tennet Holding.

Through the state development bank KfW, the federal government has acquired 25.1 percent of the former Dutch state-owned enterprise. At the end of June, according to the ministry, the three other investors from Norway, the Netherlands, and Singapore had already completed their transactions. Their stake is to rise to a total of 46 percent by 2029.

The four companies are responsible for the so-called electricity highways, which transport electricity over long distances. The lines carry electricity at extra-high voltage, that is, 220,000 or 380,000 volts. With more than 14,000 kilometers of routes, Tennet operates the largest German electricity transmission grid. It stretches from Schleswig-Holstein to Bavaria.

TenneT's tasks as a transmission grid operator

Currently, the transmission grid is being significantly expanded, primarily to bring more wind power from the north to the south. As part of the energy transition, thousands of kilometers of new lines must be built. This costs many billions of euros.

Federal Minister for Economic Affairs Katherina Reiche explained that the federal government intends to use the stake to secure the planned multibillion-euro investments in the power grid. „Mit dem Transaktionsvollzug sichern wir den Ausbau des Stromübertragungsnetzes als kritische Infrastruktur ab und stärken den Wirtschaftsstandort Deutschland“, said the CDU politician.

Federal government justifies the entry

At the same time, Reiche pointed to the involvement of private investors: „Dass neben der KfW auch drei private Investoren Anteile an Tennet Germany erwerben, sei Ausdruck der Attraktivität Deutschlands als Investitionsstandort. Mit dieser Eigentümerstruktur ist Tennet für die Zukunft gut aufgestellt."

Previously, the federal government had already held stakes in other grid operators through KfW, namely 50Hertz in central and eastern Germany (20 percent) and TransnetBW in Baden-Württemberg (24.95 percent). No state-owned enterprise holds a stake in the fourth grid operator, Amprion.

Other grid operators in Germany

In addition to the four transmission grid operators, there are 866 distribution grid operators in Germany. These are responsible for the lower voltage levels and must be clearly distinguished from the electricity highway network.

The federal government considers grid expansion to be a central project of the energy transition. Without transporting wind energy from the north to the industrial consumption centers in the south, climate neutrality cannot be achieved, according to the ministry.

With the engagement in TenneT, the federal government is now a minority owner in three of the four transmission grids. Observers see the step as a signal that the state intends to play a stronger role in shaping the expansion of critical infrastructure.

The report was broadcast on 3 July 2026 on Deutschlandfunk's programming. This means that the completion of the transaction came just a few weeks after the contract signing in early February.