National grid group Tennet may sell German operations

Dutch national electricity grid company Tennet is considering selling more of its investment in Germany than originally planned, the Financieele Dagblad reports on Friday.

Tennet, which is 100% state-owned, bought parts of the German grid at the end of 2009 but is faced with extra investment costs of between €5bn and €6n, largely to connect offshore wind parks to the mainland.
The company is now looking for a partner to take a minority stake in that project, but if it fails, the entire division may be sold, CEO Mel Kroon says in an interview.
While Kroon says he is optimistic a partner will be found, sources have told the paper the fixed return on investment of 7% to 8% determined by the German regulator is not attractive enough. Most institutional investors are looking for upwards of 10%, the paper says.
Earlier stories
Dutch national grid to buy Eon’s network
Grid operators asks state for investment

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