TenneT, the Dutch state-owned transmission operator, has agreed to sell a 46% stake in TenneT Germany to three leading institutional investors for up to $11.2 billion (€9.5 billion), the company announced on Wednesday.
The agreement will help secure the equity needed for the expansion of TenneT Germany’s high-voltage grid, which plays a central role in Europe’s energy transition, TenneT said.
The buyers include APG, investing on behalf of Dutch pension fund ABP; Singapore’s sovereign wealth fund GIC; and Norges Bank Investment Management (NBIM), which manages Norway’s $1.7 trillion oil fund, the world’s largest sovereign wealth fund.
“TenneT Germany’s transmission grid is essential for delivering renewable energy where it’s needed in Europe’s largest economy,” said Harald von Heyden, Global Head of Energy & Infrastructure at NBIM.
ABP is the pension fund for government and education employees in the Netherlands, serving 3.1
million participants while Norges Bank Investment Management (NBIM) manages the Norwegian Government Pension Fund Global, one of the largest state-owned financial investment funds in the world, with total assets under management of 1,655 billion euros as per 30 June 2025.
The deal is subject to regulatory approval and is expected to close in the first half of 2026.
Meanwhile, the German state has expressed interest in investing in TenneT Germany. TenneT and the Dutch government confirmed they are open to the move and will begin discussions with Germany’s state development bank KfW on a potential co-investment alongside the institutional partners.
Grids at the Heart of Europe’s Transition
The announcement comes as institutional investors increasingly target Europe’s grid infrastructure, driven by the EU’s push toward net zero emissions and the rapid expansion of wind and solar power.
Earlier this year, a widespread blackout in Spain and Portugal exposed vulnerabilities in Europe’s power networks. In response, the European Commission has pledged to tackle grid bottlenecks to safeguard energy stability and curb costs.
According to the European Court of Auditors, between €2 trillion and €2.3 trillion ($2.36–2.7 trillion) will be needed by 2050 to upgrade Europe’s grid infrastructure and meet growing electricity demand.
GIC is a leading global investment firm established in 1981 to secure Singapore’s financial future. As the manager of Singapore’s foreign reserves, the company take a long-term, disciplined approach to investing with an asset allocation strategy that spans three asset groups – Equities, Fixed Income, and Real Assets.
