HKCF advises the state capital Kiel

Kiel and MVV Energie Continue Their Partnership at Stadtwerke Kiel – Joint Commitment to the Gas Engine Combined Heat and Power Plant (GHKW).

Improved energy policy prospects and planning progress pave the way for an agreement between the shareholders of Stadtwerke Kiel.

Kiel – The planned gas engine combined heat and power plant (GHKW) has the potential to become a model project for the successful implementation of the energy transition through highly efficient combined heat and power (CHP) generation. Project preparations are proceeding according to plan.

The State Capital Kiel and Mannheim-based energy company MVV Energie have reached an agreement on a joint approach to replacing the existing Gemeinschaftskraftwerk (GKK), which is scheduled to be decommissioned in the coming years. As Kiel’s Mayor Dr. Ulf Kämpfer and MVV Energie CEO Dr. Georg Müller announced at a joint press conference on Friday, 15 May 2015, both partners have agreed — following months of negotiations — to move forward decisively and in a structured manner with the development of the new gas engine power plant. Both Dr. Kämpfer and Dr. Müller reaffirmed their shared responsibility: for the sustainable development of their joint enterprise Stadtwerke Kiel, for the employees, and for ensuring a secure energy supply for Kiel’s residents.

The basis for this agreement lies primarily in the significantly improved outlook for essential regulatory support measures, which have gained momentum in recent political discussions. Mayor Kämpfer and Minister President Torsten Albig had recently advocated for these improvements with the Federal Minister for Economic Affairs. The State Capital is now optimistic that policymakers in Berlin will provide the necessary framework.

At the same time, the project — led by Stadtwerke Kiel and supported by MVV Energie’s energy sector expertise — has made tangible progress in the planning of the new facility, which is to be built adjacent to the current GKK site on the eastern shore of the Kiel Fjord.

Dr. Kämpfer and Dr. Müller emphasized that these developments are essential prerequisites for ensuring the success of the gas engine plant—both technically and economically. Project planning and preparatory work will therefore continue as scheduled, with financing and construction decisions expected to be presented to the Stadtwerke Kiel supervisory board in the coming months. Dr. Müller stated: “The gas engine plant is based on a technically mature concept. If the proposed regulatory changes for the energy market in Berlin are implemented, this facility in Kiel could become a showcase for smart energy transition practices.” Such developments would also provide MVV Energie with a solid basis for evaluating the project. “Our company has consistently invested in the energy transition. If the overall package is right, we will continue our partnership with the State Capital Kiel.” As a result, alternative ownership structures are off the table, and the joint path toward realizing the GHKW will continue. The partnership between the State Capital Kiel and MVV Energie remains unchanged. Dr. Kämpfer and Dr. Müller concluded: “We will continue to work closely and in a spirit of trust, in the best interest of Stadtwerke Kiel and the people of Kiel. This commitment remains firm, even after months of debate about the right path forward for the GKK’s successor. We have always pursued these discussions with a shared sense of responsibility and a focus on reaching a mutually agreed solution.”