EIB finances €270 million green energy transformation for Karlsruhe’s grid and district heating systems

Stadtwerke Karlsruhe

(IN BRIEF) The European Investment Bank has provided Stadtwerke Karlsruhe with €270 million in long-term financing to modernize Karlsruhe’s electricity grid and expand CO₂-neutral district heating systems. The 24-year loan supports the conversion of overhead lines to underground cables, the modernization of substations, and the integration of digital management tools, preparing the city for the demands of heat pumps and electric vehicles. Smart meter rollout will give residents more control over energy use, while the financing ensures sustainable growth and affordability. The EIB’s backing underlines Karlsruhe’s leadership in advancing Germany’s energy transition and climate goals.

(PRESS RELEASE) LUXEMBOURG, 10-Nov-2025 — /EuropaWire/ — The European Investment Bank (EIB) has granted a €270 million loan to Stadtwerke Karlsruhe GmbH to support the modernization and expansion of the city’s electricity and district heating networks. The long-term financing, spanning 24 years, will play a pivotal role in helping Karlsruhe reach its climate neutrality goals by 2040 through a large-scale energy and heat transition programme. The initiative focuses on upgrading power cables, converting overhead lines to underground systems, modernizing substations, and integrating advanced digital technologies for efficient grid management.

The investment will not only improve grid stability and energy efficiency but also enable better integration of electric vehicle charging infrastructure and heat pumps across Karlsruhe. By supporting the decarbonization of district heating systems, the project aligns with Stadtwerke Karlsruhe’s strategy to deliver 100% CO₂-neutral heating in the future. Smart meters and real-time monitoring tools will empower residents to actively manage and optimize their energy consumption, enhancing both sustainability and affordability.

Michael Homann, CEO of Stadtwerke Karlsruhe, emphasized the transformative impact of the EIB’s support, noting that the financing allows essential investments to proceed while ensuring financial stability. EIB Vice-President Nicola Beer highlighted that the partnership demonstrates how local innovation, European cooperation, and long-term investment can drive meaningful progress toward Germany’s 2045 decarbonization goals.

Background information

Über die Stadtwerke Karlsruhe

Stadtwerke Karlsruhe GmbH is the municipal energy and water supply company for Karlsruhe and the region. As a reliable partner, it has supplied the population and economy with green electricity, climate-friendly heating, and clean drinking water for decades. As a joint venture, the City of Karlsruhe holds 80 percent of the shares via KVVH GmbH, while the remaining 20 percent belong to EnBW Kommunale Beteiligungen GmbH. Stadtwerke Karlsruhe stands for safe, economical, and environmentally sound supply in the region. In addition to traditional energy and drinking water supply, it offers innovative services such as energy and environmental consulting, energy services, and expansion of the fiber optic network. Street lighting and telecommunications in Karlsruhe are also part of its remit.

With about 1,200 employees and its subsidiary Stadtwerke Karlsruhe Netzservice GmbH, Stadtwerke Karlsruhe is one of the largest employers in the region. Through close cooperation with regional partners and universities, it makes an important contribution to local value creation. In 2024, SWK invested over 85 million euros in local projects. The company places great importance on training and further education for young people. Each year SWK offers numerous apprenticeships across a variety of professional fields, supporting young talents in their development. SWK has stood for active, committed environmental protection for decades. Since 1995, the company has published an extensive annual environmental statement. SWK aims to achieve climate neutrality by 2040. The European Investment Bank (EIB) is the European Union’s long-term financing institution, owned by its member states.

Über die Europäische Investitionsbank (EIB)

The EIB provides long-term financing for projects that contribute to EU policy goals. The EIB primarily finances investments in four areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). The EIB is committed to supporting projects that promote climate action, economic growth, and technological progress.

Media contact:
Richard Willis
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+352 4379 – 82155

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SOURCE: European Investment Bank