KfW IPEX-Bank: Financing to expand the electricity grid and water network in Nuremberg

• Investments in Germany’s energy transition
• Integration of renewable energies

KfW IPEX-Bank is providing N-ERGIE with financing totalling EUR 100 million for extensive investments in the electricity grid and water network. The funds come from KfW’s promotional programme “IKU – Investment Loans for Municipal and Social Enterprises”, which supports investments in municipal infrastructure, among other things.

N-ERGIE is currently making extensive investments in the electricity grid, gas, district heating and water networks within its grid area. The expansion of the power grids serves the increasing integration of renewable energies as well as the growing demands placed on the power grid due to electromobility and heat pumps.

The funds are intended to contribute to handling the immense investments the company intends to make for the energy and heating system transition in the coming years. Strategically, it focuses on four fields of action: transformation of the electricity grid, expansion of renewable energies, climate neutrality of the heat supply and expansion of district heating.

Maik Render, Spokesman of the N-ERGIE Aktiengesellschaft Management Board: “With the transformation of energy infrastructure, we are facing a colossal task. Particularly in times when financing via debt capital is becoming increasingly challenging, it is important for us to gain a reliable partner at our side with KfW IPEX-Bank. The loan of EUR 100 million is exceptionally high for our circumstances and reflects the enormous investments that we are planning, in particular for the expansion of the electricity distribution grid.”

Dr Velibor Marjanovic, Member of the Management Board of KfW IPEX-Bank: “As a transformation bank, KfW IPEX-Bank has been financing technologies of the future for many years and supports its customers in their transformation with financing. We are delighted to be able to support our new customer N-ERGIE with the help of the KfW promotional programme 'IKU – Investment Loans for Municipal and Social Enterprises' in implementing the energy transition and the resulting expansion of the electricity grid and water network. The financing underpins KfW IPEX-Bank’s aspiration to continue driving forward global as well as local projects in the energy transition."