Dutch electricity grid operator TenneT on Monday said it was very likely that an agreement on the planned sale of its German activities would be reached this year.
Sources close to the deal told Reuters on Sunday the Netherlands is close to announcing the deal to sell TenneT's power grid in Germany to the government in Berlin.
One of the sources said the purchase will likely happen via German state bank KfW, which will sell on the asset to private investors in a second stage, while Berlin is expected to keep a blocking minority holding in the long term.
"Talks are ongoing," Chief Financial Officer Arina Freitag told reporters.
"The sale is not finalized. We continue to negotiate with the German state and KfW together with our shareholder, the Ministry of Finance."
In its annual report, published on Monday, TenneT said it was "highly probable" that a transaction would be concluded in 2024.
Sources told Reuters last year that a deal could value TenneT's German assets at 20 billion to 25 billion euros ($27.36 billion).
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.
It said total investments would increase to at least 10 billion euros this year, up from 7.7 billion euros ($8.42 billion) in 2023, as it tries to alleviate congestion on electricity grids grappling with rapidly increasing amounts of renewable power.
The ten-year investment plan through 2033 now adds up to 160 billion euros, TenneT said, up from a previous estimate of 111 billion euros.
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