By Christoph Steitz and Markus Wacket

FRANKFURT/BERLIN – Three sources familiar with the matter claim that KfW, a German state bank, may take a stake at TransnetBW. This high-voltage power transmission system is one EnBW seeks to expand to a long term investment partner.

Berlin is trying to retain some control of key energy infrastructures, an effort that was highlighted in Berlin’s early discussions. It has been more critical than ever considering possible disruptions of power supply due to Ukraine war.

Germany also has very high expansion goals for wind and solar power. This requires significant investment in electricity networks to handle renewable energy throughout the country.

TransnetBW may be required to invest around 10 billion euro ($10.7billion) under Germany’s grid-development plan. This includes Suedlink which is a joint project with TenneT that transports green energy from the northern part of Germany to its southern counterpart.

KfW’s direct stake in the company would create an additional source of financing and give the government greater control when it comes time to expand its network.

EnBW has been looking at the potential sale of TransnetBW’s 49.9% to an investment partner. It aims for a decision in 2022 on whether the move should be made.

People said that the 3,100 km grid (or 1,940 mile) could be worth over 2 billion Euros ($2.1 billion) as part a potential deal. But, there have not been any decisions and no guarantees of success.

KfW would likely buy a lower stake than the potential 49.9% if it decided to invest in the grid, people stated.

EnBW stated that it couldn’t comment on KfW possible considerations. According to the German utility, “In principle however, KfW could – as many investors – be a potential financial partner in this transaction.”

EnBW said it will hold more formal talks with potential investors over the next few weeks.

KfW’s supervision is done by Germany’s Finance Ministry. This was in consultation with Germany’s Economy Ministry. The Finance Ministry declined to comment.

Germany’s Economy Ministry stated that it took note of EnBW’s plans to sell TransnetBW, and is monitoring this process.

KfW is expanding its involvement in Germany’s infrastructure industry. It bought 20 percent of TransnetBW’s 50Hertz rival from Elia the Belgian majority-owner to avoid China’s State Grid purchase.

KfW acquired a 50 percent stake in an envisioned liquefied-import terminal in March.

($1 = 0.9352 euros)