The cabinet will provide a guarantee to TenneT Netherlands. This way, the high-voltage grid operator can continue to invest in the Dutch electricity grid through favorable loans. For the financing of the German branch of TenneT, there are 2 options in sight: the private placement of shares or an IPO. This provides structural solutions for the financing needs of TenneT Netherlands and Germany, as ministers Heinen (Finance) and Hermans (Climate and Green Growth) write in a letter to the House of Representatives. All financial aspects have been incorporated into the Spring Memorandum.

A well-functioning power grid and access to electricity are essential for Dutch households and businesses. Expansion and reinforcement of the electricity grid are necessary to meet the growing demand. This requires significant investments; TenneT Netherlands is expected to invest around €90 billion over the next 10 years. To ensure that TenneT Netherlands can finance this investment task, the cabinet has decided to provide a guarantee. This allows TenneT Netherlands to attract loans with the same creditworthiness as the Dutch state (AAA). This means that borrowing on the capital market can be done under better conditions – and thus cheaper. Through this route, no additional capital contributions from the state are needed. The intention to provide a guarantee is included in the Spring Memorandum 2025. This will be presented to parliament.

For TenneT Germany, where significant investments are also needed in the coming years, the cabinet opts for private financing. An IPO or private placement of shares are the two options on the table. In the coming months, interest among private investors will be gauged, and a decision will be made before summer on which option will be further implemented.

With the proposed structural solutions, the financing structure of TenneT is changing. Currently, TenneT raises its debt through TenneT Holding and lends it to TenneT Netherlands and TenneT Germany. In the future, the debt will be raised separately by TenneT Netherlands and TenneT Germany. All existing bondholders will be asked to agree to the relocation of the debt to TenneT Netherlands in exchange for a one-time compensation. This is how TenneT is working towards a future-proof financing structure.

If there is insufficient interest among private investors for participation in TenneT Germany or if the debt restructuring fails, the Dutch state will itself provide for the capital needs of TenneT Germany. Therefore, a reservation has been included in the National Budget. The Dutch state positions itself as a responsible shareholder.