Stadtwerke Gießen will continue to operate the electricity grid in Gießen. This is stipulated in the new concession agreement, which is valid for a further 20 years.
Stadtwerke Gießen (SWG) needs a licence to operate the electricity grid in Giessen. The city of Giessen recently awarded this licence to SWG again. This is because the previous contract expires on 31 December 2023. The city therefore opened the tendering process for the electricity concession for the next two decades back in September 2020. Naturally, SWG applied for it. "SWG's overall package convinced the city of Giessen," said Lord Mayor Frank-Tilo Becher during the handover of the signed contract.
The procedure for awarding such a concession is clearly defined by law. For this reason, the city authorities scrutinised very carefully and according to clearly defined criteria which company they would enter into this relatively long-term partnership with. And since SWG best fulfils these criteria, they ultimately decided in favour of Stadtwerke Gießen again, i.e. the long-standing concession holder. The new contract comes into force on 1 January 2024.
Good reasons in favour of SWG
"We are delighted that the city continues to place its trust in us and is extending its tried-and-tested partnership with us," explains Jens Schmidt, Commercial Director of SWG. The fact that the cooperation has been running smoothly for many decades is likely to have been an important reason for the decision by the city's committees. In view of the ambitious climate policy goals, there is little time to allow the cooperation with a new partner to grow. "We can continue our successful work with the city without a familiarisation phase," adds Matthias Funk, Technical Director of SWG. SWG has also proven that it is not only a highly reliable supplier of electricity, but can also manage the energy transition: To date, SWG has approved all applications for the construction of renewable generation plants and no such power plant has ever had to be taken off the grid due to excessive feed-in volumes. All this speaks in favour of the quality of the grid and its optimal operation.
Proximity counts
The short response times in the event of faults are also likely to have been an important plus point for SWG. This is because they have their headquarters directly in Giessen, including a fully stocked warehouse. Any competitor would first have had to set up an operating centre in the city. What's more, the experts at SWG know every metre of cable and every station. "Many companies can offer energy expertise. But the excellent local knowledge in particular is invaluable - not only for security of supply, but also for the expansion of renewables," says Alexander Wright, Mayor and Chairman of the Supervisory Board of SWG, citing another argument in favour of the decision.
Last but not least, SWG naturally submitted an offer that was favourable to the municipality. Like its predecessor, the concession agreement runs for 20 years, but the city has a special right of cancellation after ten years. "We are doing everything we can to ensure that the city does not exercise this option. By working together with our contact partners in the town hall to consistently drive forward the energy transition in Giessen," promises Jens Schmidt.