German government purchases 24.95% stake in TransnetBW
Germany: The German Federal Government has purchased a 24.95% stake in transmission system operator TransnetBW.
German bank KfW, commissioned by Germany’s Federal Government, bought out the minority stake from German energy company EnBW Energie Baden-Württemberg AG. TransnetBW is one of the four electricity transmission system operators in Germany; EnBW remains its majority shareholder.
EnBW CFO Thomas Kusterer said in a release: “We are delighted to welcome two long-term oriented and reliable co-investors on board at TransnetBW. At the same time, this provides EnBW with additional funding for growth investments to accelerate the implementation of the energy transition in Germany.”
Dirk Güsewell, COO system critical infrastructure at EnBW and supervisory board chairman at TransnetBW, stated: “EnBW has fully embraced its responsibility for the transmission grid from the very beginning of the sale process. This is part of our basic philosophy as a reliable and sustainable infrastructure partner for the state, municipalities and our customers. TransnetBW is of outstanding importance for security of supply in Germany.”
Dr Werner Götz, chairman of the executive board, TransnetBW, added: “Expanding and upgrading transmission networks is a key success factor for the energy transition. Just recently, we made progress on two of our most important grid expansion projects: we held the groundbreaking ceremony for the SuedLink converter in Leingarten and we gained planning approval for ULTRANET.”
According to various studies, cited by EnBW, implementing the energy transition will require around €600 billion in investment to achieve the German government’s climate targets by 2030. Based on the results of EnBW’s progress report from earlier this year, €126 billion will be accounted for by new power lines and power line modernisation alone. The closing of the transaction is subject to the approval of the relevant antitrust authorities, which is expected later this month. The parties have agreed not to disclose financial details.
Source: Smart Energy International