The German energy company EnBW concluded, on Friday, the sale for 1 billion euros of 24.95% of TransnetBW, its subsidiary operating electricity networks, to a consortium of German banks and insurance companies, in order to free up funds to invest in the energy transition. "EnBW sells a minority stake of 24.95% of its subsidiary TransnetBW to Südwest Konsortium, a consortium of (...) 30 banks, insurance companies and companies from Baden-Württemberg," the German region where its networks are located, he said in a statement. The sale will bring in €1 billion for EnBW, according to a spokesman.
EnBW had announced in August its intention to sell two minority shares, each of 24.95%, of this subsidiary. The second batch should be subject to a right of first refusal by the German public bank KfW. The group, present in several other European countries including the France, assures however that it wants to "remain a majority" in the capital of its subsidiary. TransnetBW is one of the four leading electricity transmission system operators in Germany, along with Amprion, 50Hertz and TenneT. This sale "allows EnBW to obtain additional funds for investments to accelerate its energy transition," said the group's chief financial officer Thomas Kusterer, in a statement.
80% renewable electricity by 2030
EnBW plans to invest "€2025 billion in renewable energy and oil phase-out projects" by 4. The German group also plans to spend "6 billion euros to develop electricity networks". Germany's ruling coalition, led by Social Democrat Olaf Scholz, has set itself the target of 80% renewable electricity in its energy mix by 2030. The country therefore needs an expansion of its network of high-voltage lines, in order to transport this energy, whose production is much more decentralized than the infrastructure dedicated to fossil fuels. To meet the government's targets, more than €600 billion in investment is needed by 2030, according to a study by consultancy EY.
Berlin is discussing a takeover of the German operations of TenneT, which is owned by the Dutch government, to speed up this process. According to the press, a total purchase of this unit could cost between "18 and 20 billion euros" to the German state.