Stadtwerke Gießen will continue to operate the natural gas network in Gießen. Representatives of the municipality and the regional energy supplier signed the necessary concession agreement.
In order to operate an energy network in the streets of a municipality, energy suppliers need a corresponding licence - the so-called concession. However, before the city awards such a concession, those responsible check very carefully according to defined criteria with whom they enter into this partnership, which usually runs for 20 years. "As usual, the city has set very high standards for our company, which we are very happy to fulfil in full. We are very pleased that we were able to convince our owner to continue the proven partnership with us," explains Jens Schmidt, Commercial Director of Stadtwerke Gießen (SWG), on the occasion of the signing of the contract. It marks the successful conclusion of a process that lasted over seven months and culminated in the signing of the contract between the University City of Giessen and SWG. "The negotiations were characterised by respect, trust and professionalism. We are certain that we have found a very good solution for the city of Giessen," emphasises Lord Mayor Frank-Tilo Becher. The concession agreement comes into force on 1 January 2024.
Some innovations
In fact, the new contract takes the interests of the city of Giessen into account to an even greater extent than its predecessor document. Three examples illustrate this: SWG agrees to adapt its gas infrastructure to the needs of the city at its own expense, provided this is in the public interest. For example, if a gas pipeline makes it impossible to extend a road, SWG will lay the relevant pipes without charging the city for them. SWG also undertakes to always lay empty conduits, for example for fibre optic cables, when repairs to gas pipes are necessary. In this case, the city only bears the additional costs. Last but not least, SWG will provide detailed information on all the parameters in the gas network, such as the volume of gas being transported, at the request of the city. This ensures maximum transparency and helps those responsible in the town hall with the "Climate-neutral Giessen 2035" project. This is because it will probably be necessary to reassess the current status in terms ofCO2 emissions time and again. This requires reliable gas consumption figures.
Sustainable contract design
As stipulated in the Energy Industry Act, the concession agreement is valid for 20 years. "In light of the 'Climate-neutral Giessen 2035' project, this long term needs to be explained," says Matthias Funk, Chief Technical Officer at SWG, adding: "That's why we have agreed a special right of cancellation." The city of Giessen can actually terminate the contract on 31 December 2033 or 31 December 2038. "It was crucial for us that SWG accommodated us at this key point and thus supported us in our endeavours," says Mayor Alexander Wright.
With the new concession agreement, the city of Giessen and SWG are setting an important course for the future. It creates a secure framework for achieving the decarbonisation of Giessen by 2035. In the remaining twelve years until the planned climate neutrality, natural gas will become increasingly less important, but will nevertheless remain an indispensable energy source in some areas.