EIB Provides €70 Million Loan for Stadtwerke Reutlingen’s Infrastructure Investment
(IN BRIEF) Stadtwerke Reutlingen has received a €70 million loan from the European Investment Bank (EIB) to modernize its electricity grid and expand its district heating network as part of Germany’s energy transition. The loan will fund infrastructure upgrades, including new power cables, substations, and the automation of grid control to accommodate more renewable energy sources. Additionally, the district heating network will be expanded to replace outdated systems with sustainable options, helping decarbonize the region’s heating. EIB Vice-President Nicola Beer and Stadtwerke Reutlingen’s Managing Director Jens Balcerek emphasized the importance of this investment in ensuring reliable, clean energy for the region’s future.
(PRESS RELEASE) LUXEMBOURG, 14-Jan-2025 — /EuropaWire/ — Stadtwerke Reutlingen, the local utility company, has secured a €70 million loan from the European Investment Bank (EIB) to support the modernization of the electricity and district heating networks in the region. The funds will be used to enhance the area’s infrastructure as part of Germany’s broader energy transition, aimed at improving the integration and distribution of renewable energy sources such as wind and solar power.
The majority of the loan will be allocated to upgrading Reutlingen’s electricity grid. Key projects include replacing and installing new power cables and overhead lines at all voltage levels by 2027, alongside the modernization of substations. In addition, the project involves integrating advanced grid components to enable automation and digitalization of grid control, which is essential for efficiently handling the increasing influx of renewable energy into the system.
These upgrades are essential to accommodate growing local solar and wind power production, as well as the integration of new consumer technologies, such as heat pumps and electric vehicle chargers. Furthermore, the project supports Germany’s ambitious goal to meet rising electricity demand and significantly boost renewable energy generation, which the Federal Network Agency estimates will require a €327.7 billion investment in electricity grids by 2045.
In Reutlingen, part of the investment will also be directed toward expanding the district heating network, aiming to replace outdated gas and oil heating systems. This expansion will enable more residents and businesses to connect to a more sustainable energy grid, further advancing the decarbonization of the region’s heating systems.
EIB Vice-President Nicola Beer emphasized the importance of such investments, stating, “The green transition requires additional investment in grid infrastructure. Our electricity grids must be modernized to accommodate the rapid growth of renewable energy sources and rising demand for electricity. Through our financing of projects like the one in Reutlingen, we are helping ensure a reliable and secure power supply for local communities.”
Jens Balcerek, Managing Director of Stadtwerke Reutlingen, highlighted the value of the EIB’s support, noting, “The EIB’s involvement is crucial in enabling us to meet the investment challenges ahead. Our goal is to enhance the quality of life in Reutlingen and the surrounding region by providing sustainable, reliable, and locally generated energy. Expanding both our electricity grid and district heating network is key to achieving that goal.”
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.
All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.
Stadtwerke Reutlingen
Stadtwerke Reutlingen GmbH, together with its affiliated companies FairEnergie GmbH, FairNetz GmbH, Reutlinger Stadtverkehr companies and Kraftwerk Reutlingen-Kirchentellinsfurt AG, aims to contribute to a high quality of life and a strong economy in Reutlingen and the surrounding area. With around 750 employees, the group uses its expertise every day in its commitment to benefit residents’ well-being.
FairEnergie GmbH, FairNetz GmbH, the Reutlinger Stadtverkehr companies and Kraftwerk Reutlingen-Kirchentellinsfurt AG are high-performing energy, water and public transport providers. In addition, Stadtwerke Reutlingen operates four swimming pools in Reutlingen.
Stadtwerke Reutlingen GmbH provides its associated companies with essential business services. These are: business management, human resources and training, accounting services and financial control, as well as material management and IT services. In addition, the group is one of the largest training providers in Reutlingen.
Stadtwerke Reutlingen works with the city council on important sustainability issues in and around Reutlingen, with the aim of addressing climate issues in the area.
Media Contact:
Donata Riedel
d.riedel@eib.org
+352 4379 – 86192
Press Office
press@eib.org
+352 43791
SOURCE: European Investment Bank
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