Re-municipalisation in Germany as a tool for local governments

Re-municipalisation in Germany as a tool for local governments Anne Kallies RMIT, Graduate School of Business and Law What is Re-Municipalisation? Local governments taking back responsibility for local services Especially the operation of local (distribution) grids Local Governments in

Germany Have a special place in the German Constitution Public Services are part of the right to self-government and to regulate local affairs The Electricity Sector (source AEMO: An Introduction to the Australian Electricity Market (2011))

Who operates German distribution networks? Post war 1990s a mix of public and private utilities Liberalisation - late 2000s privatisation of majority of grids

late 2000s onwards the pendulum swings back to communal ownership Why do we see local governments re-engaging in grids? Commitment to energy transition Shift in generation to private and

communal ownership Empowering the public Example: Goals of BrgerEnergie Berlin (Citizen Energy Berlin) Citizens control the grid Citizens should shape the energy infrastructure and the establishment of a sustainable energy system. We strive to democratize decision-making in the energy system, empowering citizens to participate in designing the electricity sector and the grid.

Renewables for the City Only if we improve the energy grid will it be possible to shift to a 100% renewable energy supply. We seek to support the grid integration of renewable energies and invest part of the grid earnings in projects of a sustainable energy system. Sustainable Profits Grid operations in Berlin regularly entail considerable profits for the current concessionaire, Vattenfall. We think that citizens should benefit directly from grid earnings. This promotes regional investments Berlin

and its citizens stand to gain. This is also true for every shareholder of the cooperative: energy grids provide for safe investment opportunities and a reliable yield. Concession Contract Renewal: A Window of Opportunity To operate a local grid you need a contract with the local government

cannot be awarded for longer than 20 years Renewal of concession contracts after liberalisation is happening now! 3.1 Orte in Deutschland, in denen seit 2005 Stadtwerke neu gegrndet

worden sind Wie aus der Karte ersichtlich ist, lassen sich bei den Stadtwerke-Neugrndungen rumliche Konzentrationen (Cluster) feststellen. Source: Wuppertal Institut, Stadwerke Neugrndungen und Abbildung 2: Orte in Deutschland, in denen seit 2005 Stadtwerke neu gegrndet worden sind Rekommunalisierungen (Sondierungsstudie, September 2013) 8 tepmap.de; Angaben erheben keinen Anspruch auf Vollstndigkeit

By the end of 2012: - 190 communities run their own grid - 70 municipal utilities founded Thank you! Questions? Dr Anne Kallies Lecturer, Law RMIT, Graduate School of Business & Law E: [email protected]