The Dutch government said on Friday it will provide a loan of up to 25 billion euros ($27 billion) in the next two years to grid operator TenneT to ensure it can continue investing in the energy transition while the sale of its German arm is delayed.
The Dutch and German governments have negotiated for months over the sale, but have failed to reach an agreement so far, the Dutch finance ministry said in a letter to parliament.
"There is no certainty we can reach a deal," the ministry said. "Meanwhile, TenneT needs to keep investing to reduce congestion on the grid."
State-owned TenneT operates the Dutch high-voltage grid and part of the German grid, and is key in the energy transition away from fossil fuels amid increasing demand for electricity.
The German government is still planning to buy TenneT's business in Germany but the plan hit a hurdle after the country's constitutional court ruled that unused COVID-19 pandemic funds could not be re-used for climate projects.
Germany's Federal Ministry for Economic Affairs and Climate Action (BMWK) on Friday said that talks on the sale were ongoing, declining to give further comment.
Berlin had requested the sale last year in order to get more control over its own energy infrastructure, while the Dutch government said it was reluctant to use Dutch tax payers' money for investments in the German grid.
TenneT needs around 13 billion euros for investments in the grid in both countries this year and 12 billion euros in 2025, the Dutch government said.
($1 = 0.9121 euros)
