Germany – Vattenfall and the State of Berlin have entered into exclusive negotiations regarding the potential sale of Vattenfall’s heat business in Germany. A decision on the sale is expected later this year.
Vattenfall announced in May 2022 that it would review its Berlin heat business, Vattenfall Wärme Berlin AG. After a thorough process involving multiple parties, Vattenfall and the State of Berlin have agreed to exclusive negotiations.
Both parties share a common goal of developing Berlin’s heat supply sustainably and future-proof, decarbonizing, and securing long-term jobs.
Reshaping Berlin’s heat supply
Vattenfall’s Berlin heat business employs around 1,700 people and provides hot water and heating to approximately 1.4 million households. It owns and operates 10 combined heat and power plants (CHP), 105 small block-type thermal power plants, and various other facilities. The heat network spans over 2,000 km. Amid the energy crisis and heat law discussions in Germany, demand for district heating connections in Berlin has risen by around 70% compared to previous years.
The exclusive negotiations between Vattenfall and the State of Berlin mark a crucial step towards a potential deal that could reshape Berlin’s heat supply. While challenges exist, the potential benefits of a sustainable, decarbonized, and secure heat supply for Berlin’s future are significant.
