An amount of EUR 500 million, intended for investments in power grid in the Netherlands, is likely to be raised through selling a minority stake in the Dutch power grid operator TenneT, according to Reuters.
The company is planning to connect wind farms and to upgrade the grid in the north of the country in 2014 and 2015, thus it needs to secure the necessary funds.
An initial public offering (IPO) would be launched, from which any profit would go to TenneT. This would secure the money for the domestic grid projects and ease the pressure on the country’s budget.
However, before starting with the sale process, the Ministry of Finance needs to approve the IPO. The decision from the Ministry is expected to be familiar around the summer, Reuters cites TenneT’s CEO Mel Kroon as saying.
The company intends to invest EUR 13 billion in grid projects in the Netherlands and Germany.
In Germany, TenneT plans to upgrade the transmission system to support offshore wind power expansion, and the company is also working on securing funds for those projects.
It also aims to cooperate with further investors on financing German offshore wind projects, after the deal with Mitsubishi , which will invest in four offshore grid connections. Soon after, TenneT revealed that it is already in talks with potential investors for other similar projects.
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Offshore WIND Staff, March 13, 2013; Image: tennettso