Contract signing for the Federal Government's entry into TenneT Germany

On February 3, KfW signed the contract on behalf of the Federal Government to acquire a 25.1% stake in TenneT Germany from the Dutch TenneT Holding. With over 14,000 of grid kilometers, TenneT Germany operates the largest German power transmission grid.

With this minority stake, the Federal Government will gain influence over TenneT Germany according to its share. In addition to co-determination rights regarding the management and business plan of the company, the Federal Government can, for example, send voting representatives to the shareholders' and supervisory bodies.

Federal Minister Katherina Reiche:

"In order to achieve energy policy goals, it is necessary to expand the electricity grids in line with demand. The Federal Government's investment in TenneT will help to secure the billions in capital that will be needed in the coming years. With this investment in the infrastructure of the future, we are strengthening Germany as a business location."

KfW CEO Stefan Wintels:

"This investment is a milestone for the supply security and resilience of the German and European energy infrastructure. With our investment on behalf of the Federal Government and together with three other institutional investors, we are making an important contribution to long-term stability, competitiveness, and sustainable growth. The volume of the transaction underscores the attractiveness of Germany as an economic and investment location and shows how state and institutional capital can work together responsibly. We are pleased to support the Federal Government in this important project with our expertise."

The Budget Committee of the Bundestag had already released the corresponding budget funds in its meeting on 16 January, thus paving the way for the signing. The Federal Government secures the acquisition of the shares by KfW and the committed capital contributions through risk assumption, without funds flowing from the federal budget for this purpose. The refinancing and administrative costs of KfW, on the other hand, will be borne by the federal budget. The appropriateness of the purchase price was examined, among other things, by obtaining two fairness opinions. The profitability of the investment was also confirmed by a corresponding expert opinion.

In September 2025, the Dutch government announced that the Norwegian sovereign wealth fund Norges, the Dutch pension fund APG, and the Singaporean sovereign wealth fund GIC want to acquire up to 46% of the shares in TenneT Germany by 2029. The private investors have also committed capital contributions of up to EUR 9.50 billion. The Federal Government will acquire its 25.1% stake in TenneT Germany at the same purchase price valuation as the co-investors. The remaining stake will remain with the Dutch TenneT Holding.

As is customary for corporate investments, regulatory approvals must now still be obtained to complete the acquisition of the TenneT Germany shares. This step is currently expected to be completed by the third quarter of 2026 at the latest. In addition to the existing investments of the Federal Government through KfW in 50Hertz (20%) and TransnetBW (24.95%), the Federal Government would then be involved in three of the four German power transmission grid operators.