News item | 08-09-2023 | 2:15 PM
The government intends to invest €500 million in the regional network company Stedin. This capital contribution is at the request of Stedin in order to continue to invest sufficiently in the electricity grid. By contributing equity, the Dutch state becomes a shareholder in the company. Stedin will thus become a state holding. The Council of Ministers agreed to this at the proposal of Minister Kaag of Finance and Minister Jetten of Climate and Energy.
Energy transition requires a solid, future-proof network
Stedin invests heavily in the electricity grid to guarantee quality and ensure that there is sufficient capacity for sustainability and expansion in the future. The company invested more than €700 million in its network in 2022 and at least another €8 billion in investments are expected until 2030. In order to continue investing in the coming years, Stedin and its shareholders have requested the state to meet a capital requirement of €500 million. The government intends to grant this request and made a reservation for this in the 2023 Budget Memorandum last year.
Network company Stedin is responsible for the network in most of South Holland and the provinces of Utrecht and Zeeland. This network includes approximately 2.3 million connections for both households and business customers.
Minister Jetten for Climate and Energy: “It is crucial that the expansion of the electricity grid continues at a high pace. Much more space is needed for all households and companies that want to produce electricity themselves in the coming years or switch from fossil energy to sustainable electricity. Grid operators, the government and companies are working hard to find solutions for the full power grid. I am pleased that the central government can now also provide financial support.”
Minister Kaag of Finance: “We face a major task with the energy transition. Access to the energy network is essential and the energy network must be robust and future-proof. With this capital contribution, the government would like to contribute to safeguarding the public interest in the energy supply.”
Shareholding
With the payment of €500 million in capital, the state will become an 11.9% shareholder in Stedin. This makes the regional network company a state-owned company. The company’s shareholding is currently in the hands of 42 municipalities in the service area where Stedin has been appointed as regional grid operator. Public shareholding is one of the pillars to safeguard the public interests of an efficient and well-operating network company.