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The energy transition has major implications for electricity transmission in both countries and the CWE region.
In this light, the objective of the joint declaration of intent signed today is twofold. Firstly, Germany and the Netherlands have jointly concluded that a closer cooperation between transmission system operators in the Netherlands, Germany and potentially other nearby Member States may support an efficient energy supply. TenneT, currently owned by the Dutch state, and which is active both in the Netherlands and Germany, is an important transmission system operator and plays a vital role in achieving the targets resulting from the energy transition plans of the two countries. It is estimated that TenneT’s capital expenditure plans for the German-Dutch transmission grid require substantial additional funds for investments until 2029. The joint declaration of intent expresses the intention to explore the options regarding investments and shareholding by Germany and the Netherlands in TenneT and to develop a joint approach to strengthen the capital base of TenneT.
Secondly, Germany and the Netherlands intend to investigate the possibilities for further cooperation between Germany and the Netherlands on issues as investments in grids, innovative grid solutions, the implementation of cross-border redispatch mechanisms and the joint development of offshore hubs.
The signing followed the joint declaration of intent on the energy transition of 2 October 2019, which acknowledged the importance of closer regional energy cooperation between both countries.
Federal Minister for Economic Affairs and Energy Peter Altmaier said: “The energy transition has major implications for electricity transmission and notably transmission system operators in both the Netherlands and Germany. If it is to succeed, it is important to seize the benefits of closer cooperation and coordination with our Dutch neighbours, especially in terms of efficient and innovative grid solutions, and to realise the investments needed in the grids in the most cost-effective manner.”
Federal Minister of Finance Olaf Scholz said: “A successful energy transition builds on sustainable electricity grids within the European Internal Energy Market. The energy transition is an opportunity for the future economic development. I expect that the cooperation between Germany and the Netherlands will provide a positive stimulus for the development of the electricity grids in Germany.”
Wopke Hoekstra, Minister of Finance of the Netherlands, said: “As neighbouring countries, the Netherlands and Germany are the most important allies and key partners for each other when it comes to working together to advance the energy transition. I appreciate the good cooperation that serves the public interest of our two countries. I am confident that our intention to work together with the German government will be to the benefit of both states and TenneT – not only in the short term, but also for the future. The energy transition is confronting us with major challenges. Here, TenneT is playing a key role.”
Eric Wiebes, Minister of Economic Affairs and Climate Policy of the Netherlands, said: “The spectacular rise in solar and wind energy projects underlines the need for investment to make the electricity grid fit for the future. It is therefore important that TenneT, the transmission system operator in the Netherlands and in parts of Germany, has large capital resources to make sure that this ambitious investment agenda can be implemented in good time. By developing a common approach, Germany and the Netherlands can work together to establish an affordable and sustainable electricity grid to ensure security of supply for consumers.”
