BBH lawyer and partner Dr. Markus Kachel was invited to give his expert opinion on Rhineland-Palatinate’s legislative proposal on heat planning. In today’s hearing, the lawyer specialising in municipal and industrial transformation projects advised the climate, energy and mobility committee of the state parliament on municipal heat planning and financing issues.

Dr. Markus Kachel pointed out that decarbonising heat supply is a key element for a climate-neutral energy supply. The organisation of heat supply in rural areas is, however, fragmented and characterised by a lack of distribution infrastructures. It would thus make sense to have heat planning carried out by municipal entities that are familiar with the local situation. Rhineland-Palatinate’s legislative proposal for implementing the Heat Planning Act not only takes these circumstances into account, but also uses the leeway for simplified heat planning provided in the federal act. What is striking is a gap in the proposal: Municipalities are in charge of planning, but not implementing the plan. This responsibility will primarily fall to municipal supply companies which often lack the necessary financial means given their manifold and extensive tasks in transforming energy supply. Municipalities as owners of the supply companies will not be able to provide appropriate equity. To fill this gap, support by mainly institutional investors is needed. Dr. Markus Kachel believes that one way to solve the financing problem is the establishment of a structured fund with the state mitigating the risks through collateral instruments. In his opinion, involving the private capital sector is essential; existing funding programmes at federal and state level are not sufficient. 

“Rhineland-Palatinate has many options to set an example and become an innovative pioneer, especially in supporting the financing of the required generation installations and heat networks,” says the lawyer.

With more than 700 employees, 7,000 clients and 7 offices, the BBH group is a leading provider of advisory services to energy and infrastructure companies. Energy and supply companies (particularly public utilities, municipalities and local authorities), industrial companies and international groups are among its core clients. The BBH group assists these and many other companies and organisations from all business sectors with legal, business and strategic advice.

Contact:
Prof. Dr. Ines Zenke
Rechtsanwältin/Lawyer, Partner
Phone +49 (0)30 611 28 40-179
ines.zenke@bbh-online.de

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