Municipal Utilities’ Capital Needs
Berlin: The Association of Municipal Enterprises (VKU) has warned of a significant capital need for municipal utilities in the coming years. According to VKU President Ingbert Liebing, investments of around 150 billion euros will be necessary by 2030 to secure the energy and water supply, as well as waste disposal.
The main reasons for the high capital requirements are the necessary expansion of renewable energies, the modernization of networks, and the digitalization of infrastructure. In addition, investments in climate protection measures and adaptation to climate change are also becoming increasingly important.
Liebing emphasized that the municipal utilities are committed to making these investments, but they also need support from policymakers. He called for reliable investment conditions, such as accelerated approval procedures and targeted funding programs.
The VKU also criticized the federal government’s plans to introduce a gas price brake. According to Liebing, this would put additional pressure on the liquidity of municipal utilities, which are already struggling with rising energy costs.
The concerns of the VKU are shared by many experts. The German Institute for Economic Research (DIW) recently estimated that the capital needs of municipal utilities could amount to up to 250 billion euros by 2030.
The high capital requirements pose a major challenge for municipal utilities. If they are not able to finance their investments, it could have serious consequences for the security of supply and the quality of services. Therefore, it is important that policymakers create the necessary framework conditions to enable municipal utilities to meet their capital needs.
Kapitalbedarf der kommunalen Versorgungsunternehmen
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