Suggestions call for investment in alternative energy sources.
Collaboratively, Deloitte, the Federal Association of the Energy and Water Industry, and the Association of Municipal Utilities create a report concerning investments necessary for energy transformation. Participation from the state, financial sector, and energy businesses is urged.
To satisfy the extensive monetary requirements of the energy transition, the energy and water industry and municipal utilities suggest the establishment of a fund. A key component of this initiative includes a state guarantee, according to a concept paper. This assurance could tempt private capital providers.
The energy and water industry, Association of Municipal Utilities, and Deloitte suggest the energy sector anticipates requires around 721 billion euros for the energy transition in Germany by 2030. This figure might even reach up to 1.2 trillion euros by 2035. These funds would play a critical role in areas such as renewable energy expansion, network development and modernization, decarbonization of the heating sector, and the development of the hydrogen economy.
The mobilization of private capital is considered "crucial." The proposed energy transition fund should begin with an initial volume of 30-50 billion euros and grow over time with rising demand. "Professional fund arrangements as well as state supportive and risk-minimizing measures (like governmental and state financial guarantees or sureties)" should generate an environment appealing to financial backers.
BDEW Director Kerstin Andreae pointed out the energy sector allocated enormous sums towards the growth of renewable energy, networks, and storage. In the following years, the capital demand will skyrocket significantly. "A medley of various financing tools, together with state-sponsored supporting measures, is mandatory."
VKU Director Ingbert Liebing maintained that even strong and efficient municipal utilities could not self-fund the high investments awaiting them in the foreseeable future. "Additionally, we mustn't disregard the cost implications for consumers. Therefore, the energy transition fund is pivotal."
