Germany: EIB supports expansion of electricity and district heating networks in Reutlingen

The European Investment Bank (EIB) is supporting Stadtwerke Reutlingen with €70 million in financing for its extensive network investment plan.

Most of the investment is being provided to modernise the electricity grids in the area. The investment plan also involves replacing or installing new power cables and overhead lines of all voltage levels by the end of 2027. Substations also need to be modernised. Modern grid components are also required to automate and digitalise grid control.

The investments are needed to add more local solar and wind power producers to the grid, to enable consumers to connect heat pumps and chargers, and to further the digital transition.

The Federal Network Agency reports that €327.7 billion in investment is required in electricity grids across Germany by 2045, as a result of higher electricity demand and a sharp increase in renewable electricity generation. This figure includes investment in the distribution networks of municipal utility companies. In addition, distribution networks need to be made “smart” to further increase technical maximum load thresholds without causing damage, to ensure fast connection between heat pumps and the grid, and to coordinate feed-in and take-out on a local level. This requires the use of additional telecommunications and computing equipment and technology.

In Reutlingen, investments are also planned to expand the district heating network to replace gas and oil heating systems, allowing more consumers in and around Reutlingen to connect to the grid.

The project’s overarching aim is to ensure that power supply in the Reutlingen area remains reliable and safe as electricity demand grows, while also decarbonising heating systems.

“The green transition requires additional investment in grid infrastructure. Our electricity grids need to be more modern and efficient to keep up with the rapid expansion of renewable energies and growing electricity demand in an increasingly electrified world,” said EIB Vice-President Nicola Beer. “By financing projects run by municipal utility companies such as the one in Reutlingen, we are ensuring that electricity supply is reliable and safe for local residents and businesses.”

“EIB support plays an important role in helping the owners and operators of electricity and heating networks like us finance our plans and respond to the demanding investment challenges that lie ahead. Our objective is to improve the quality of life in Reutlingen and the surrounding region in a sustainable manner by improving access to reliable, clean and locally generated energy. To achieve this goal, we must expand both our electricity grid and district heating network at the same time,” says Managing Director of Stadtwerke Reutlingen GmbH Jens Balcerek.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.