About Stadtwerke

A stadtwerke is a business entity with strong public elements that deploys
public services such as electricity, gas, heating, water and transportation.

A stadtwerke refers to a small-scale communal business entity responsible for regional energy and lifestyle infrastructure. These stadtwerke exist throughout Germany. There are currently around 900 such companies in Germany, and together they maintain a share of approximately 20% of the Germany electric power retail market.


A stadtwerke aims to maximize the public welfare of a region.

The advantages of stadtwerke

  • Swift and rational decision-making
  • Achieves energy independence while accepting risks
  • A priority on regional benefits from a long-term perspective
  • Creates the foundations for cultivating experts

The purpose of stadtwerke

  • Contribute to the public welfare of a region
  • Utilize regional characteristics
  • Place an importance on regional demand

The makeup of investment participation differs by region.

  • Cases where the local government
    of the service base makes a 100% contribution
  • Cases where joint investments
    are made with other regional cities
  • Cases where private sector firms
    make partial investments

Expected Effects of a Stadtwerke

A stadtwerke embraces “for the region” as its management philosophy. Rather than placing a priority on profits as a private company does, a stadtwerke places the greatest emphasis on regional wants, and the business and operating structure which generates profits by responding to those wants builds a happy relationship for all three parties, namely the local residents, local government and the business entity.

The quality of regional lifestyle services improve.

A stadtwerke brings a wide range of benefits.

  • benefit01

    Community-based services

    • Energy consumption diagnosis
      for each household
    • Dispatch of technicians when failures
      occur at the home
    • Compensation for damages
      (refrigerator contents, etc.)
      in the event of power outages
  • benefit02

    Utilization of regional resources

    • Operation of water power and
      biomass power generation
    • Use of heat produced from
  • benefit03

    Creation of industry
    and employment

    • ESCO business for households, etc.
    • Direct employment
      + indirect employment
      + induced employment
  • benefit04

    Regional contribution

    • Creation of regional industry
    • Development of human resources
  • benefit05

    Revitalization of
    unused land and vacant homes

    • Conversion of old homes into
      guest houses
    • Coordination between
      sightseeing areas and guest houses
    • Running of kleingartens
      (allotment-based community gardens)
  • benefit06

    Securing finances

    • Economic circulation of regional industry
    • Revitalization of regional industry