Germany: Stadtwerke Karlsruhe receives EUR 270 million backing from the EIB

New financing enables modernization and expansion of Karlsruhe’s electricity grid – and district heating. Programme is central to plan for 100% CO₂-neutral district heating.

Stadtwerke Karlsruhe GmbH is receiving EUR 270 million financing from the European Investment Bank. The long-term / 24 year loan will support large-scale modernization and expansion of Karlsruhe’s electricity grid, alongside development of the grid and district heating generation facilities. This funding is an essential element for financing large-scale investment in Stadtwerke Karlsruhe’s electricity and district heating network in the coming years as part of the energy and heat transition.

The loan enables Stadtwerke Karlsruhe to carry out large-scale renewal of power cables as well as the conversion of overhead lines to underground cables across the city. Modernization of several substations and integration of digital technologies for grid management will also be financed. This will help Stadtwerke Karlsruhe to future-proof Karlsruhe’s electricity grid, adapting it to growing challenges – including the increasing number of connected heat pumps and e-charging stations for electric vehicles. The transformation will eliminate thousands of tonnes of CO₂, bringing Karlsruhe closer to climate neutrality by 2040. Every new connection to the district heating network and every upgrade means less carbon, and a city that’s doing its part for the climate. The EIB financing will also back planned modernization of the district heating generation plant.

The integration of smart meters and digital network controls means faster fault detection, fewer outages, and more control for every household. Karlsruhe’s grid is getting future-ready: digital innovation will help connect more heat pumps and e-car chargers while keeping supply stable and affordable.

Residents will be able to monitor and optimise their energy consumption in real time, thanks to state-of-the-art tools made possible by this investment. Digital services empower our community to actively manage household energy use and savings.

„The energy and heat transition presents us with great opportunities and great challenges. The demands on our electricity grid are rising. Karlsruhe’s district heating should become CO₂-neutral. The significant support from the European Investment Bank is a vital help on our path to a sustainable energy future. The loan allows us to make essential investment in our electricity grid and district heating generation. The EIB’s support ensures that upgrading our local infrastructure is both ambitious and financially sustainable. I appreciate the trust the European Investment Bank has placed in our projects“, said Michael Homann, CEO of Stadtwerke Karlsruhe.

“Karlsruhe is proving that a city’s best days lie ahead when innovation, community spirit, and European backing come together. By supporting the shift to CO₂-neutral heating, Karlsruhe is leading Germany’s journey to decarbonise energy by 2045—showing what’s possible when local ambition meets strategic investment. With this cooperation, the EIB is backing Karlsruhe’s bold vision to create a future-ready city – where families, businesses, and communities thrive thanks to reliable, green energy and forward-thinking investment. Our commitment is to empower city partners across Germany and Europe to lead the way in transformation, ensuring the benefits of innovation and sustainability reach everyone. The EIB’s 24-year financing empowers Karlsruhe to plan decades ahead, locking in affordable rates and providing certainty for families and businesses. Long-term partnerships like this help communities achieve what short-term financing simply cannot”, said Nicola Beer, Vice President of the European Investment Bank.

“This investment is part of the EIB’s wider mission to back bold energy transition projects in cities and towns across Germany. From Dresden to Cologne, from Hamburg to Karlsruhe, the EIB stands beside German communities working toward affordable, greener energy. This partnership is about more than infrastructure—it’s futureproofing the city for generations to come.” added Nicola Beer.

Background information

Über die Stadtwerke Karlsruhe

Stadtwerke Karlsruhe GmbH is the municipal energy and water supply company for Karlsruhe and the region. As a reliable partner, it has supplied the population and economy with green electricity, climate-friendly heating, and clean drinking water for decades. As a joint venture, the City of Karlsruhe holds 80 percent of the shares via KVVH GmbH, while the remaining 20 percent belong to EnBW Kommunale Beteiligungen GmbH. Stadtwerke Karlsruhe stands for safe, economical, and environmentally sound supply in the region. In addition to traditional energy and drinking water supply, it offers innovative services such as energy and environmental consulting, energy services, and expansion of the fiber optic network. Street lighting and telecommunications in Karlsruhe are also part of its remit.

With about 1,200 employees and its subsidiary Stadtwerke Karlsruhe Netzservice GmbH, Stadtwerke Karlsruhe is one of the largest employers in the region. Through close cooperation with regional partners and universities, it makes an important contribution to local value creation. In 2024, SWK invested over 85 million euros in local projects. The company places great importance on training and further education for young people. Each year SWK offers numerous apprenticeships across a variety of professional fields, supporting young talents in their development. SWK has stood for active, committed environmental protection for decades. Since 1995, the company has published an extensive annual environmental statement. SWK aims to achieve climate neutrality by 2040. The European Investment Bank (EIB) is the European Union’s long-term financing institution, owned by its member states.

Über die Europäische Investitionsbank (EIB)

The EIB provides long-term financing for projects that contribute to EU policy goals. The EIB primarily finances investments in four areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). The EIB is committed to supporting projects that promote climate action, economic growth, and technological progress.