Stedin shareholders reach agreement on the Dutch government becoming a new shareholder

At its Annual General Meeting of 8 December, the shareholders of Stedin Group reached unanimous agreement on the Dutch government becoming a shareholder of the grid operator. This decision means that the government will strengthen Stedin’s equity by €500 million and in doing so will take an 11.9% shareholding. Stedin requires the additional capital to continue to invest in the expansion and reinforcement of the electricity grid.

The government participating as a shareholder is an important step in strengthening Stedin’s balance sheet. This is a process that started in 2019 when Stedin’s analysis concluded that it required additional capital to continue to invest. In recent years, existing shareholders have already contributed €451 million and this will now be supplemented by an extra capital injection by the government. Because the government is becoming a shareholder, this also boosts Stedin’s credit rating. Altogether, this results in approximately €1.7 billion in additional borrowing capacity.

In talks with provinces

In addition to strengthening its equity, one of Stedin’s goals is to better reflect its shareholders in the service area: currently 42 municipalities. Consequently, Stedin remains in talks, including with the provinces of Utrecht, Zeeland, Zuid-Holland and non-shareholding municipalities, about potentially becoming shareholders. Stedin expects to have a clear picture of the outcome of the talks in the first quarter of 2024.

Demand for electricity has doubled

Stedin is working on reinforcing and expanding the electricity grid because the demand for electricity is set to more than double or even triple by 2030. To connect homes and businesses and to ensure that they can switch from fossil fuels to sustainable electricity, as well as installing more charging points and solar and wind farms, Stedin is investing heavily in the expansion of the electricity grid: at least €8 billion by 2030. To do this, Stedin needs additional equity if it is to continue to adequately meet its borrowing needs, among other things.