With 25 billion euros of public money, grid operator TenneT will further expand the electricity grid. This was announced by Finance Minister Steven van Weyenberg last week. The money will be transferred over the years 2024 and 2025. Energy companies are reacting happily to the billion dollar loan.
Currently, the power grid is overloaded, with some locations even shutting down connections for large consumers of power. This also puts at risk the government's goal of rapidly switching to green energy. Funds will be used to build thicker cables, among other things, which will allow more power to be transported through the grid.
So despite the Cabinet's outgoing status, financial support is being provided. This is a bridging loan because TenneT needs financial resources until the German branch is sold to Germany.
By lending the full amount needed to TenneT, the company would not have to take out additional loans on the capital market. State support would also be needed to persuade financiers. However, the House of Representatives and Senate still have to approve the cabinet's intention.
President Cora van Nieuwenhuizen of industry association Energie-Nederland says finances are now no longer an obstacle to expanding the congested power grid. "Tennet can now go full speed ahead, and it has to because we are facing a major social problem. Companies are getting stuck in their sustainability efforts, such as solar parks waiting for connections," Van Nieuwenhuizen said. Energie-Nederland expects the implementation of plans to address the problems to start soon now.
