Germany’s plan to buy its largest power grid from Dutch state-owned operator Tennet Holding BV is facing delays amid emerging political roadblocks.
While both parties initially aimed to reach a deal in principle this month, hammering out the final details for a transaction has proved difficult on both sides, according to people familiar with the matter.
The Dutch government would still like to see a higher price tag, while German government is wrestling with diverging views within its three-way coalition on how to structure the grid ownership once the deal is through, according to the people, who asked not to be identified as the talks are private.
A spokesperson for Dutch finance ministry said the negotiations are ongoing and declined to comment further. A spokesperson for Tennet also declined to comment, as did representatives for Germany’s finance and economy ministries.
The planned acquisition is part of Germany’s efforts to consolidate the country’s power grids and bolster energy security amid a challenging transition to renewables and uncertainty triggered by the loss of pipeline gas supplies from Russia. Germany’s goal to achieve climate neutrality by 2045 requires a massive overhaul of the nation’s grid to link the offshore wind produced in the north with its industrial heartland in the south.
Bloomberg reported at the end of September that Germany and the Netherlands aimed to reach a deal within weeks and have the Dutch parliament approve it before the start of a recess in late October, and prior to general elections on Nov. 22.
Source: Yahoo Finance