Senate plans billion-dollar deal with Vattenfall for district heating

From Hildburg Bruns

We’ve been working on this for two years, and now the politicians involved are warming their hearts: from now on, Vattenfall will only be negotiating exclusively with the state of Berlin about the sale of the district heating.

It will be a billion dollar deal, financed through loans. Berlin’s shopping list includes ten power plants, 105 combined heat and power plants and the largest city heating system in Western Europe. 2,022 kilometers long, which currently brings heat to 1.3 million homes with water at temperatures of 80 to 135 degrees.

The Swedish state-owned company Vattenfall wants to reduce its involvement in Germany and has already sold East German lignite, Hamburg’s district heating and Berlin’s power grid.

What appeals to the Berlin Senate about the deal? “Our goal is a sustainable, safe and affordable heat supply for Berlin,” says Finance Senator Stefan Evers (44). Apparently other applicants dropped out.

40 percent of the capital’s CO2 emissions come from district heating generation. If Berlin wants to become climate neutral, this can only be achieved by converting the power plants to green hydrogen, which is produced using wind and solar energy, for example in Mecklenburg-Western Pomerania and Brandenburg.

State of Berlin and Vattenfall

Important signatures: Stefan Evers (l) and Franziska Giffey sign the agreement on exclusive negotiations with Martijn Hagens, head of heating at Vattenfall Photo: Hildburg Bruns

In a second step, Gasag will come on board with its industrial partners Engie (France) and Eon (Ruhr area) – in an integrated network operation for gas and heat. Ultimately, the state of Berlin wants a 51 percent stake.

“We want to bring the heat back home,” says Economics Senator Franziska Giffey (45, SPD). “As with water and electricity, it’s about security of supply and price stability for Berliners.”

She emphasizes: “This is the most important project of our energy policy in this legislative period and an important decision for the future.

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