Eckpunktepapier: Bund will Investitionen in Energieinfrastrukturausbau absichern

Germany aims to secure investments in energy infrastructure by creating a framework that will make it easier for city utilities and energy suppliers to access capital. A recent study commissioned by Agora Energiewende estimates that companies will need around 68 billion euros in additional funds by 2035. During a meeting of state energy ministers in the spring, the need for network infrastructure investments was highlighted, particularly by many city utilities, which were facing significant challenges.

The decision from May 2026 stated that the energy ministers and state commissioners are urging the Bund to create mezzanine instruments or senior debt within the framework of the Germany Fund, which would strengthen the capital base of city utilities and facilitate borrowing. On Wednesday, the Federal Minister for Economic Affairs and Energy, the Federal Finance Minister, and the state energy ministers agreed on a paper outlining measures to facilitate capital provision for city utilities and energy suppliers.

The Bund plans to utilize the Germany Fund through KfW instruments to provide financing that will facilitate borrowing and private capital provision for power distribution and heating networks. Both sides agree that suppliers need a strong capital base to access loans. While some states have already taken steps to strengthen their capital bases, including granting consortium loans based on municipal ordinances and providing secured subordinated capital through state development banks, the Bund and the Länder will explore further capital-strengthening measures to enable necessary investments in power distribution and heating networks.

The Bund and the Länder also aim to find ways to allow municipalities to increase the capital base of their respective city utilities directly. However, due to strained finances in many regions, this is currently not possible, even though such investments in the network promise long-term returns for municipal and community coffers.

In the paper, the Bund states that it will provide the guarantee for 60 percent of the financing volume provided through the product, which can be used to strengthen capital without giving capital providers voting rights.