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TenneT has significantly increased its investments in critical onshore and offshore electricity infrastructure in the Netherlands and Germany, spending €5.5 billion in the first half of 2025, up from €4.6 billion in the same period last year.
This surge underscores the company’s role in supporting the ongoing electrification of the energy system in the Netherlands and Germany. Despite some delays in onshore projects, the rise in investment is largely due to intensified efforts in grid development on land.
Arina Freitag, CFO of TenneT Holding, emphasized the importance of financial stability:
“‘Our financial strength is crucial to the execution of our investment portfolio. In this regard, we are pleased that the Dutch government provides a state guarantee of EUR 52 billion to TenneT Netherlands, backing approximately EUR 90 billion in Dutch grid investments over the next decade.”
TenneT aims to invest €200 billion by 2034 in grid infrastructure across its two home markets.
Revenue and Earnings See Major Growth
TenneT’s underlying revenue climbed to €4.41 billion in H1 2025, up €359 million from H1 2024. Underlying EBIT rose sharply to €1.47 billion from €1.00 billion—a gain also driven by the sale of subsidiary NOVEC, which operated antenna towers.
Structural Changes and New Leadership
As of January 1, 2025, TenneT operates through two independent entities—TenneT Netherlands and TenneT Germany—under the umbrella of TenneT Holding. A decision on long-term financing for TenneT Germany, including a potential IPO or private share placement, is expected in September 2025.
Leadership changes include new appointments to the board of TenneT Germany and the future succession of Arina Freitag by Dieuwert Inia as CFO of TenneT Holding and TenneT Netherlands starting January 2026.
Project Milestones in the Netherlands and Germany
In the Netherlands, key milestones include completing grid reinforcement projects in Zeeland and installing the Hollandse Kust (west Beta) topside. However, permitting and supply delays continue to affect timelines. A new acceleration package developed with the Dutch Ministry of Climate Policy aims to reduce lead times and ease grid congestion.
Germany saw construction begin on the Hardebek substation and two major offshore converter platforms—BorWin 5 and DolWin 5—bringing offshore transmission capacity close to 10 GW. Still, solar capacity growth has outpaced grid expansion, prompting further efforts to enhance flexibility and reliability.
Innovation to Maximize Grid Capacity
TenneT is increasingly focused on smart grid solutions. Time-Dependent Transmission Right (TDTR) contracts in the Netherlands have unlocked 9.1 GW of additional capacity by allowing discounted access during off-peak hours. Dynamic Line Rating (DLR) is also being used to extract up to 30% more capacity by leveraging weather conditions.
Manon van Beek, CEO of TenneT Holding, highlighted the importance of both building and innovating:
“In addition to expanding our high-voltage grid more quickly by building more assets, the existing capacity of the grid can also be utilised better. Therefore, ‘building’ must be accompanied by smart, flexible solutions. Dynamic tariffs, dynamic line rating, sharing grid connections and battery systems at the right locations create space on the electricity grid. The solutions are available if we dare to make the right choices.”
Call for Policy Continuity Amid Political Transition
TenneT remains committed to its international cooperation efforts, including its vision for an integrated North Sea energy grid. Amid the political uncertainty in the Netherlands, the company has urged policymakers to maintain momentum on critical energy investments, particularly offshore wind.
“Continuity is also crucial when it comes to investments in offshore wind energy which is highly important for Europe’s energy security, economic resilience, and geopolitical independence. Potential delays threaten this future.” said van Beek.
Source: TenneT Image credit: BGF