BDEW publishes data on the development of investments by electricity suppliers

Source: Energy & Management Powernews, January 21, 2022

Companies in the German electricity and gas industries are among the largest investors in Germany, according to an evaluation by the industry association BDEW. 

With the exception of vehicle manufacturing, no other industrial sector invests more than the energy industry, according to the German Association of Energy and Water Industries (BDEW). According to initial estimates, a record amount of investment was made in 2021: Accordingly, a total of 20.5 billion euros were invested by companies in the energy industry in Germany in the past year 2021. 

Companies in the power supply industry invested 15.4 billion euros of this, the lion's share. Investments here amounted to 4.3 billion euros for power generation facilities, 9.9 billion euros for transmission and distribution facilities and 1.2 billion euros for other purposes such as metering points, IT and others. If the plans of the electricity suppliers are followed, another record high in investments could be in store in 2022 with 16.1 billion euros. 

A total of 3.1 billion euros was invested by German gas supply companies in 2021. In 2019, a high for the last two decades of 3.6 billion euros was reached. Around three-quarters of total investments in the German gas industry are made annually for the expansion and repair of the pipeline network. In 2021 alone, 2.6 billion euros were invested in the pipeline network. The remaining share was used for exploration wells, gas processing, gas storage and other. 

For the realization of the energy turnaround targets, further, substantial investments will have to flow into the conversion of energy generation, especially for renewable energies and gas-fired power plants, into the expansion and conversion of the energy infrastructure and the development of a hydrogen economy by 2030 and beyond, according to BDEW. In the view of the industry association, creating the necessary conditions and framework for this in good time is a key task for the new German government. 

The development of investments of electricity suppliers (photo credit: BDEW)

The number of employees at German energy suppliers also developed positively in 2021. According to preliminary figures, a total of 200,400 people were employed in this sector, up from 198,333 the year before. The largest employer in 2021 was power supply, with 143,000 employees, ahead of gas supply (41,300) and heating/cooling supply (16,100).

The figures are taken from the Annual Report "The Energy Supply 2021" which can be downloaded from the BDEW website.

Author: Peter Koller