Title: Berlin Takes Over District Heating Network from Vattenfall: A Steps towards Energy Infrastructure in Public Hands
In a historical move, Berlin is grabbing the reins of its district heating network from Swedish energy supplier Vattenfall. The state government announced the acquisition in a joint statement with Vattenfall, cited by Kai Wegner, the Governing Mayor of Berlin, and Vattenfall itself. The deal, valued at a hefty 1.6 billion euros according to Finance Senator Stefan Evers, is set to materialize in spring 2024.
Wegner hailed the day as monumental for Berlin, while Senators from opposition parties showcased their approval as well. The agreement, however, lingers in the waiting phase for approval from the Berlin House of Representatives. Notably, the agreement includes an option for Berlin to gain control over Vattenfall's shares in gas network operator Gasag as well.
Interestingly, Berlin had shown its pursuit of Vattenfall's district heating business after the Swedish energy supplier revealed its intentions to review its district heating operations in the German capital. Berlin Senate eagerly entered the bidding process in early December 2022, climbing aboard the train during exclusive negotiations starting in late October of the same year.
By taking over the district heating network, Berlin buttresses its broader strategy of keeping energy and supply infrastructure within its own hands. The electricity and water networks were previously in state control, and now, the district heating network adds another feather to the cap. The gas network, for the time being, remains in private hands.
On the other hand, Vattenfall eyeing an exit from fossil fuels, tested its district heating business in Berlin. Despite stalling on making a final decision on a sale, the company announced plans to inject 200 million euros in the network, highlighting its commitment to energy innovation.
Further Insights
- The Berlin district heating network is a notably substantial operation, being considered the largest in the country.
- Despite the announcement of the deal, no specifics have been launched on the purchase price and the acquisition of Vattenfall's shares in Gasag.
This strategic acquisition by Berlin heats up its commitment to decentralized energy infrastructure, allowing the city to hold the reins in the face of changing energy landscapes.
