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PwC Finds €346 Billion Hole in Stadtwerke Funding as Utilities Urge Government Action

A fresh analysis warns of an investment gap that threatens the decarbonization of district heating through 2045.

Overview

  • PwC estimates regional utilities need about €535 billion by 2045, leaving roughly €346 billion unfunded, or 65% of the total requirement.
  • A VKU survey of 609 municipal providers finds 51% do not believe a long‑term affordable heat supply is secured, prompting a call for action in mid‑November budget talks.
  • Consultants cite limited capital‑market access and municipal profit withdrawals, with average returns down to 8.4% from 13.5% over five years and indebtedness up to 4% from 2.4%.
  • Decarbonizing heating plants alone would require about €75 billion to switch from gas to biomass or large heat pumps, alongside investments in wind, solar, and grids.
  • Suggested remedies include state‑backed risk sharing for loans, legal changes to enable municipal borrowing as shareholders, opening to private investors, silent equity, EU funds, and broader lender participation.