The state has abandoned plans to buy part of TenneT, which operates Germany's biggest power grid network. The U-turn has spooked energy firms EnBW and RWE.
ADVERTISEMENTMajor German energy companies EnBW and RWE have postponed initiatives to sell stakes in some of the country's transmission networks, according to Bloomberg sources.
This comes after the government scrapped plans to buy a stake in TenneT, which operates the country's biggest power grid.
Given this investment gap, EnBW and RWE's sales have been thrown into uncertainty, as demand could weaken for their shares in transmission networks.
Energy firms consider next steps
It's possible that the energy firms are delaying the transactions due to fears that the stakes could be undervalued.
Bloomberg noted that EnBW and RWE are awaiting further clarity regarding the government's next steps.
EnBW is considering a full or partial sale of its remaining stake in grid operator TransnetBW, according to sources.
The Chief Financial Officer of RWE, meanwhile, said on a recent earnings call that RWE is exploring "various options" for its 25.1% share in grid operator Amprion GmbH.
Bernstein analysts valued this stake at around €1.6bn in May.
Collapse of TenneT Germany sale
The coalition of German Chancellor Olaf Scholz scrapped plans to buy the German arm of TenneT, which is a Dutch state-owned firm, in June.
Officials were hoping that the deal would mark an important step towards the nation's climate pledges, although the project was ultimately deemed too expensive.
Germany is seeking to achieve carbon neutrality by 2045 and proposals to merge its four high-voltage networks could help it to do so.
Specifically, modernising the ageing power grids could make it easier to incorporate renewable energy into the system.
After the original TenneT deal fell through, which was estimated at between €20bn and €25bn, then-Dutch finance minister Steven van Weyenberg expressed dismay at the German government's backtracking.
"Of course I am disappointed that the negotiations, which were started at the request of the German government and have already lasted a good year and a half, have not led to a successful outcome," van Weyenberg said.
"TenneT is preparing concrete options for a private sale, or partial sale, or initial public offering of TenneT Germany," Van Weyenburg added.
ADVERTISEMENTGerman officials are now suggesting its government could acquire a minority share in TenneT Germany.
