Abstract
Since the majority of network concession contracts in Germany were set to expire some time between 2005 and 2016, a window of opportunity arose in which to rebuild and remunicipalise the local energy supply. As a result, 72 new local power companies were established in Germany within the space of just seven years (between early 2005 and late 2012). This paper provides an introduction to the topic of establishing municipal utilities in Germany. The findings were identified on the basis of the comprehensive screening of all newly established municipal utilities in Germany. Our analysis provides information about regional concentration, the size of municipalities, the legal forms of the newly founded municipal public utilities and the role of strategic partnerships. The key findings are that remunicipalisation is not a question of size and that knowledge gaps may be closed by entering into close strategic partnerships.
Highlights
The ownership of Germany’s energy system is concentrated in the hands of large utilities operating across the generation, distribution and supply sectors
What role do strategic partnerships play in municipal start-up utilities? The aim of this paper is to provide a better understanding of remunicipalisation in the German energy market and to encourage scientists to engage in more extensive research activities on the promising establishment of new municipal utilities
There is a definite trend towards remunicipalisation in Germany, as evidenced by the analysis presented in this article
Summary
The ownership of Germany’s energy system is concentrated in the hands of large utilities operating across the generation, distribution and supply sectors. Compared to the total number of towns and communities in Germany, municipalities with up to 25,000 inhabitants are rather under-represented when it comes to the establishment of new public utility companies. One important explanation for the hesitancy to establish new public utilities in small towns and villages (especially those with less than 10,000 inhabitants) is that they find it difficult to establish and operate municipal utilities The reasons for these difficulties include a lack of qualified personnel, a lack of technical know-how, skills and resources, and poor value for money. Two examples are Hamburg Energie and Stadtwerke Stuttgart These two companies have large concession areas, and the cities used to operate their own public utilities before they were privatised. Regarding the potential to play an important role in reducing greenhouse gas emissions at the local level, strategies for demand-side management or selling less electricity, for example, are easier to implement if there are no external shareholders to satisfy [13]
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