In a bid to gain a seat at the table of all four major transmission system operators (TSOs), the German federal government is considering taking minority stakes in TenneT Germany and Amprion through multi-billion-euro capital increases, according to people familiar with the matter in corporate and advisory circles. Any stake in TenneT could amount to a blocking minority, and be structured in parallel with market-based private-sector investments.

Dutch-owned TenneT Holding, which operates grids in both the Netherlands and Germany, recently reported a 50% year-on-year increase in adjusted EBIT to 1.5 billion euros for the first half of 2025, while capital expenditures rose 20% to 5.5 billion euros.

Ownership structures are also shifting at Amprion. The German government already holds stakes in two other TSOs – 20% in 50Hertz (a unit of Belgium’s Elia) and 25% in TransnetBW (owned by EnBW) – via the state-owned KfW development bank. Both recently carried out capital increases.

The governing coalition agreement between the conservative CDU/CSU and the social democrat party SPD includes a pledge to explore strategic stakes in grid operators as part of Germany’s energy transition. „By investing in all four TSOs, the federal government could accelerate and help coordinate grid expansion – for example through appropriate funding – and also influence shareholder structures in critical infrastructure“, says Rüdiger Schmidt-Bendun, a partner at law firm Skadden in Frankfurt.

As confirmed by the Ministry for Economic Affairs and Energy (BMWK), the German government has already submitted a non-binding expression of interest to the Dutch government. Further information is now expected from The Hague, and from TenneT Holding itself, to serve as the basis for ongoing review and negotiations, a ministry spokesperson said.

TenneT is wholly owned by the Dutch Ministry of Finance. The German government had already entered advanced talks about taking a stake in the legally ringfenced German unit, TenneT Germany – led by CEO Tim Meyerjürgens – around 18 months ago. However, a constitutional court ruling regarding Germany’s off-budget funds derailed the financing plans.

TenneT has since mandated investment bank Lazard to launch a new sale process, with Rothschild advising the Dutch government. Under the current plan, minority stakes could go to Dutch pension fund APG, Norway’s sovereign wealth fund Norges, and the German government. Meanwhile, Morgan Stanley is working on an IPO track. Whether the company proceeds with a listing or sale will be decided by Dutch Finance Minister Eelco Heinen in September. Analysts put a value of around 30 billion euros on TenneT Germany.

Transmission system operators are typically valued at about 1.2 times their regulated asset base (RAB).

There is also market talk about the potential acquisition of a stake in Dortmund-based Amprion – though the Ministry for Economic Affairs spokesperson would not confirm whether or not there is interest in such a move from the federal government. Amprion’s existing shareholders already injected 850 million euros in fresh equity last year. A further capital increase, „significantly larger than in 2024“, is planned for 2025, CFO Peter Rüth recently confirmed. Written commitments have been secured from all shareholders, including RWE.

RWE is reviewing financing options but has yet to make a decision. Whether the Essen-based utility would ultimately agree to sell a blocking minority in Amprion remains unclear. „Amprion is a highly efficient and profitable company. We like our stake in Amprion“, CFO Michael Müller recently noted in an interview.

Amprion CEO Christoph Müller addressed the coalition agreement’s call to explore „strategic investments, including in grid operators“ only indirectly at the company’s annual press conference. Financing the grid expansion, he says, depends on capital market viability, not on public ownership.

Müller also voiced satisfaction with Amprion’s shareholder structure, commenting that "we are happy with RWE“, and suggesting that the company aims to remain independent.

„The current setup works well“, says an Amprion spokesperson. No details have been provided regarding the timing or size of this year’s capital increase.