Norges Bank Investment Management (NBIM), responsible for the investments of the Government Pension Fund Global, and Dutch pension fund ABP have acquired stakes in TenneT Germany, supporting the expansion and modernisation of the country’s electricity grid.

The pair invested alongside Singapore's sovereign wealth fund GIC, and will hold a combined 46 per cent stake in TenneT Germany, while TenneT Holding, the Dutch state-owned parent of TenneT Germany, will retain the remaining 54 per cent stake.

In particular, NBIM will invest up to €4.5bn for a 21.8 per cent stake, while ABP, through its operator APG, will take around 11 per cent.

In total, the three investors will provide the company with a total of €9.5bn over the next four years, with the transaction valuing TenneT Germany at approximately €40bn as of 31 December 2025.

NBIM said that the investment aligns with its renewable infrastructure strategy focused on long-term value creation.

This was similar to ABP's reasoning, as the fund said that the allocation qualifies as an impact investment, as the investment is expected to contribute €2.2bn to ABP's impact objectives by 2030.

The Dutch fund also said that the risk of this investment is limited as the electricity grid will remain necessary in its current form well into the foreseeable future and only grow further due to the energy transition, and its importance makes it "vital infrastructure".

It explained that this electricity grid infrastructure is “so crucial” that the German government is keen to keep it in good condition, and given this, the investment is considered an investment with a stable expected long-term return.

ABP also acknowledged that although TenneT operates in the Netherlands, private parties can’t invest there as Dutch law blocks investment in “vital infrastructure” such as the electricity grid.

Tennet Germany manages around 14,000 kilometres of high-voltage lines throughout central Germany, from the North Sea to the Alps and controls roughly half of the German grid.

To cope with the growing share of renewable energy, TenneT Germany requires significant funding to expand and modernise its network to handle the growing share of sustainably generated energy.

To address this, the Dutch government decided last year to allow major investors to invest in the company.

The capital from these investments will enable TenneT Germany to expand and modernise its high-voltage grid to transport renewable energy from production hubs to major consumption centres.

Completion of the deal is expected in the first half of 2026 following the signing of the agreement on 24 September 2025.

Commenting on the investment, NBIM global head of renewable energy infrastructure, Harald von Heyden, said it was “pleased” to partner with TenneT Holding, APG and GIC to finance the growth of TenneT Germany.

“TenneT Germany’s transmission network is crucial for delivering renewable electricity to where it is needed most in Europe’s largest economy," von Heyden stated.

Adding to this, ABP chairman of the executive board, Harmen van Wijnen, said: “Investing in energy infrastructure yields a good and stable return over the long term.

“At the same time, with this investment, we are also contributing to the much-needed renewal and expansion of the power grid, paving the way for more sustainably generated energy.”

Van Wijnen noted that this transaction is “good news” for ABP, as it invests to ensure the most purchasing power and stability for pensions possible and also wants to make a positive impact.

“We achieve both goals with this agreement,” he said.  

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