MVV Energie not to participate in new power plant in Kiel

Mannheim-based energy company MVV Energie has informed the state capital city of Kiel that it will not be participating in constructing the new gas-powered combined heat and power plant in Kiel. According to MVV Energie, which holds a majority stake in the municipal utility company Stadtwerke Kiel, the intense round of planning and preliminary work performed in recent months to find a follow-up solution for the coal-fired power plant due to be decommissioned in two years' time had produced a technically sophisticated concept. This met the requirements both of Stadtwerke Kiel and of the state capital city of Kiel in terms of ensuring long-term heating energy supply reliability. Within this process, MVV Energie had acted as a reliable, responsible partner and had duly contributed its expertise and experience.

The total investment of just under Euro 300 million now required to implement the project did not fit in with the Group's overall portfolio and also could not be justified towards MVV Energie's majority shareholder, the city of Mannheim.

As a company with municipal roots itself, MVV Energie was aware of the need to find an efficient heating energy solution in Kiel. On the Supervisory Board of Stadtwerke Kiel, MVV Energie had therefore agreed to the performance of the necessary groundwork, and that despite the difficult economic and uncertain political framework for the project. In the weeks ahead, confidential talks should now be held between MVV Energie and the city of Kiel, the two shareholders in Stadtwerke Kiel, in order to find a mutually acceptable solution. Ultimately, the reacquisition of the stake in Stadtwerke Kiel by the city of Kiel might represent part of such solution.