Germany buys 25.1% stake in Tennet to accelerate grid expansion and lure investors
The German government has secured a significant minority stake in Tennet Germany, the operator of the country's largest electricity grid. The deal, finalised on Tuesday, marks a shift in strategy after earlier attempts to fully nationalise the company failed last year. Officials now aim to use this investment to speed up grid expansion and attract further international funding.
In June 2024, the traffic-light coalition government first tried to buy a controlling share in Tennet Germany. The negotiations collapsed, but not over the price—political disagreements blocked the deal instead.
This time, the federal government took a different approach. Through state-owned bank KfW, it agreed to purchase a 25.1% stake for €7.6 billion. The move comes as Germany adjusts its energy policy, moving away from full state takeovers toward targeted minority investments.
Tennet Germany manages over 14,000 kilometres of transmission lines, making it a key player in the country's energy transition. By taking a stake, the government hopes to create stable conditions that will reassure foreign investors. The decision also reflects broader strategic priorities, as officials balance grid expansion with other infrastructure changes.
Meanwhile, in January 2026, Germany lost control of its TanQuid oil storage assets to a U.S. billionaire with ties to former President Donald Trump. This contrast highlights the government's evolving focus on energy security and investment signals.
The €7.6 billion deal gives the federal government a quarter share in Tennet Germany. The investment is designed to accelerate grid upgrades and demonstrate commitment to the energy transition. At the same time, it follows a period of shifting ownership strategies in Germany's critical infrastructure.
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