Dutch State seeking equity stake in electricity grid operator Stedin
The Dutch government plans to acquire a stake in the electricity grid operator Stedin for 500 million euros. This was announced by ministers Sigrid Kaag (Finance) and Rob Jetten (Climate and Energy) to the Tweede Kamer. The company had requested this capital injection to continue investing sufficiently in the necessary expansion of the electricity grid.
Stedin is responsible for the power grid in Utrecht, Zeeland, and the majority of Zuid-Holland, serving a total of 2.3 million connected households and businesses. Thanks to the capital injection, which had already been allocated funds in last year's budget, the state will own 11.9 percent of the company. Stedin is otherwise owned by municipalities in the service area.
The chairman of Stedin's shareholder committee Maarten Struijvenberg described the agreement as an "important step." "In this way, we are working together to ensure a future-proof power supply for residents and business owners in Stedin's service area," said Struijvenberg, who is also the finance alderman for the city of Rotterdam.
Rob Jetten said he considers it "of critical importance" that the expansion of the electricity grid continues at full steam. "Much more space is needed for all the households and companies that want to produce electricity themselves or switch from fossil energy to renewable electricity in the coming years." With the capital injection, the government aims to help make the energy grid "robust and future-proof," Sigrid Kaag said.
The electricity grid in the Netherlands is due for expansion. For instance, Stedin anticipates that the demand for electricity will more than double by 2030. This will require investments of at least 8 billion euros by the end of this decade. This money will go towards, for example, transitioning companies from fossil fuels to sustainable electricity, as well as installing charging stations and developing solar and wind.
Reporting by ANP