KfW IPEX-Bank Provides Up to €250 Million to BEN to Expand and Modernise Berlin’s Electricity Distribution Grid for Energy Transition and Digitalisation

Photo taken in Berlin, Germany

(IN BRIEF) KfW IPEX-Bank is providing up to €250 million to BEN Berlin Energie und Netzholding GmbH to support the modernisation, reinforcement and expansion of Berlin’s electricity distribution grid, operated by subsidiary Stromnetz Berlin GmbH. The financing will help create additional network capacity for renewable energy connections, data centres and electromobility as the German capital responds to rising electricity demand associated with the energy transition and digitalisation. BEN plans to invest approximately €3.6 billion by 2030 in strengthening and expanding Berlin’s grid infrastructure. The transaction is the second financing provided by KfW IPEX-Bank to BEN since the remunicipalisation of Stromnetz Berlin in 2021, reflecting continued cooperation between the organisations. Dr Velibor Marjanovic, member of the Management Board of KfW IPEX-Bank, said the investment will help align Berlin’s electricity network with future energy and digital requirements while establishing a foundation for reliable and climate-friendly power supply. The financing also supports Berlin’s wider climate objectives and the resilience of a grid increasingly important to transport electrification, renewable energy integration and digital infrastructure.

(PRESS RELEASE) FRANKFURT, 11-Sep-2026 — /EuropaWire/ — KfW IPEX-Bank is providing financing of up to €250 million to BEN Berlin Energie und Netzholding GmbH (BEN) to support extensive investment in Berlin’s electricity distribution network, operated by its subsidiary Stromnetz Berlin GmbH.

The financing will contribute to the modernisation, reinforcement and needs-based expansion of the capital’s power grid as Berlin prepares for growing electricity demand associated with the energy transition, digitalisation and the increasing electrification of transport.

The investments are intended to create additional grid capacity for the connection of renewable energy sources, data centres and electromobility infrastructure, while strengthening the reliability and resilience of electricity supply across Berlin.

BEN plans around €3.6 billion in grid investment by 2030

The KfW IPEX-Bank financing forms part of a significantly larger programme of investment planned by BEN for Berlin’s electricity infrastructure.

By 2030, the company expects to invest approximately €3.6 billion in expanding and reinforcing the city’s distribution grid.

The programme is designed to ensure that the network can accommodate increasing and changing electricity flows as Berlin advances its climate objectives and more sectors shift toward electrification.

A stronger distribution network will also be essential for connecting new electricity consumers and producers while maintaining a secure and reliable supply.

Grid expansion will support renewable energy integration

Part of the financing will be used for targeted reinforcement and expansion measures intended to increase the network’s ability to integrate renewable energy.

As the energy system becomes increasingly decentralised and electricity generated from renewable sources plays a larger role, distribution grids must be capable of handling more complex power flows.

Investment in grid infrastructure can provide the capacity required to connect additional renewable generation while ensuring that electricity can be transported reliably to households, businesses and other consumers.

The financing therefore supports both Berlin’s electricity infrastructure and the wider transition toward a lower-carbon energy system.

Data centres create additional electricity demand

The investment programme will also help prepare Berlin’s electricity network for increasing demand from data centres.

Such facilities require substantial and reliable power capacity, making grid availability an important consideration for future digital infrastructure development.

By strengthening and expanding the distribution network, BEN aims to create the infrastructure required to accommodate additional high-demand connections while maintaining service quality for existing customers.

This links Berlin’s energy infrastructure investment directly with the city’s continuing digitalisation.

Electromobility requires additional grid capacity

The growth of electromobility is another major factor behind the need for distribution-grid investment.

As electric vehicles become more widespread, charging infrastructure will place additional demands on local electricity networks.

Grid reinforcement and expansion will therefore be necessary to ensure sufficient capacity for charging facilities in residential, commercial and public environments.

KfW IPEX-Bank said its financing will help support the infrastructure required for this transition, contributing to both energy and transport decarbonisation.

Second KfW IPEX-Bank financing since remunicipalisation

The transaction marks the second time KfW IPEX-Bank has provided financing to BEN since Stromnetz Berlin was returned to municipal ownership in 2021.

The repeat financing reflects an established relationship between the parties as Berlin continues investing in its electricity infrastructure.

Stromnetz Berlin is responsible for operating the city’s electricity distribution grid, while BEN serves as the municipal holding company overseeing the network business.

The financing arrangement demonstrates the role of long-term institutional funding in supporting major urban infrastructure programmes.

Berlin grid investment supports climate objectives

Expanding electricity infrastructure is an important part of Berlin’s ability to meet its longer-term climate ambitions.

Electrification across transport, buildings, industry and digital infrastructure is expected to increase demand for power while requiring greater flexibility from distribution networks.

At the same time, the integration of renewable energy sources requires grids capable of managing changing generation patterns and increasingly diverse connection requirements.

The planned investment programme is intended to ensure that Berlin’s distribution network evolves alongside these changes.

KfW IPEX-Bank highlights energy transition and digitalisation

Dr Velibor Marjanovic, member of the Management Board of KfW IPEX-Bank, said the bank is pleased to support the State of Berlin as it aligns its electricity network with the requirements of both the energy transition and digitalisation.

He said the investments will establish the foundation for a reliable and climate-friendly energy supply in the capital region.

Marjanovic added that the strengthened grid infrastructure will also reinforce Berlin’s position within the wider European energy system.

Financing supports long-term resilience of capital’s electricity network

The programme is intended not only to meet immediate connection requirements but also to prepare Berlin’s network for long-term structural changes in electricity consumption and generation.

Grid infrastructure often requires substantial investment years before new demand fully materialises, making forward planning particularly important in rapidly electrifying urban areas.

By providing up to €250 million toward BEN’s wider investment programme, KfW IPEX-Bank is helping fund infrastructure that will underpin future renewable-energy connections, electric mobility and digital-sector development.

The financing forms part of Berlin’s broader effort to ensure that electricity infrastructure keeps pace with the city’s economic development and decarbonisation priorities.

Media Contact:

Birte Kock
KfW IPEX-Bank Press Office
+49 69 7431-59638
birte.kock@kfw.de

SOURCE: KfW