Germany and the Netherlands join forces for energy transition

In: Grid
19/05/2020
Germany and the Netherlands have signed a joint declaration of intent to further the energy co-operation regarding grids and electricity transmission. This has major implications for electricity transmission in both countries and the CWE region.

The Declaration of Intent signed today covers two objectives.
Firstly, Germany and the Netherlands have jointly concluded that a closer co-operation between transmission system operators in the Netherlands, Germany and potentially other nearby Member States in the future may support an efficient energy supply. TenneT, a Dutch State owned company, active in both 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 high voltage electricity grid require substantial additional funds for investments until 2029. The Joint Declaration of Intent expresses an 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.

The second objective for Germany and the Netherlands includes investigating the possibilities for further co-operation between the two countries on issues as investments in grids, innovative grid solutions, the implementation of cross-border redispatch mechanisms and the joint development of Offshore-Hubs.


Previously, the joint declaration of intent on energy transition from 2nd of October 2019 acknowledged the importance of closer regional energy cooperation between both countries.


Federal Minister 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 co-operation and coordination with our Dutch neighbors especially in terms of efficient and innovative grid solutions and to realize the investments needed in the grids in the most cost effective manner.”

Olaf Scholz, Minister of Finance, said: “A successful energy transition builds on sustainable electricity grids within Europe's internal energy market. The transition is an opportunity for future economic development. I expect a cooperation between Germany and the Netherlands to give a positive impulse to the development of the electricity grid in Germany.”


Wopke Hoekstra, Minister of Finance, said: "As neighbouring countries, the Netherlands and Germany are each other’s main allies and key partners when it comes to working together in the transition towards renewable energy. I value the good cooperation that benefits our common public interest. I’m confident that our intention to working together with the German state will be beneficial for both States and TenneT – not only on the short term but also for the future. The energy transition poses major challenges for us. TenneT plays a vital role in this."


Eric Wiebes, Minister of Economic Affairs and Climate Policy, said: “The spectacular rise of solar and wind energy projects underlines the need for investments to future proof the electricity grid. It is therefore important that TenneT, which operates the high voltage electricity grid in the Netherlands and in part of Germany, has a strong capital position to ensure that this ambitious investment agenda will be implemented in a timely manner. By developing a joint approach, Germany and the Netherlands can work together on creating an affordable and sustainable electricity network that provides security of supply for consumers."


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