Swedish state-owned utility Vattenfall AB has announced plans to invest over €5 billion (USD 5.4 billion) in Germany. The investment will focus on fossil-free generation, e-mobility, and energy services. This decision underscores Vattenfall’s commitment to Germany, especially after selling its district heating business in Berlin earlier this year.
Investment in Renewable Energy and Storage
Vattenfall’s investment in Germany will include building around 500 MW of solar parks and 300 MW of large batteries annually. The company also plans to develop agri-PV (agriculture-integrated photovoltaics) facilities, which combine farming with solar energy production. These initiatives align with Vattenfall’s long-term goals of increasing renewable energy capacity.
Also read: Netherlands concludes largest offshore wind auction for two sites
By 2028, Vattenfall expects to complete its two offshore wind projects, Nordlicht 1 and 2, with a combined capacity of 1.6 GW. In addition, the company has an onshore wind pipeline in Germany, targeting 1.5 GW of new capacity.
These investments reflect the company’s strategy to expand its renewable energy footprint in Europe’s fastest-growing energy market.
E-Mobility Expansion
Vattenfall is also making a significant push into the e-mobility sector. The company plans to invest €500 million in electric vehicle (EV) charging infrastructure by 2028. This investment will cover everything from installing charging stations to their operation and maintenance. Vattenfall’s e-mobility focus reflects Germany’s growing demand for clean transportation solutions.
Strategic Shift and Future Outlook
Vattenfall’s sale of its district heating business in Berlin for €1.4 billion in May marked a significant strategic shift for the company. Despite this divestment, Vattenfall has reaffirmed its commitment to Germany’s energy transition.
According to Robert Zurawski, CFO of Vattenfall’s German unit, Germany’s growing demand for renewable energy presents significant opportunities for the company’s expansion.
Also read: ADB Approves $21.95M for Maldives Climate Resilience and Food Security
Zurawski noted that electricity demand in Germany is expected to increase by 40% by 2030, with the potential to double by 2045. With such projections, Vattenfall sees considerable growth opportunities in the country’s renewable energy and energy services markets.
Vattenfall’s €5 billion investment in Germany signals its commitment to renewable energy, e-mobility, and the country’s broader energy transition. The company’s focus on solar, wind, and battery storage will play a key role in supporting Germany’s ambitious climate goals.