Public Utilities Study 2023
Investments in a Sustainable Energy Supply for the Future
Authors
Klara Dhaouadi
Jamel Dhaouadi
4min read
14 Sep 2023
The City Utilities Study 2023 highlights the challenges faced by public utilities in Germany, including the need for substantial investments in renewable energy infrastructure, a growing shortage of skilled workers, and a shift in priorities towards renewable energy and away from digitalization.
In brief
- Despite success in the crisis year, city utilities are looking apprehensively at the
current year. - Expansion of renewable energies: High investment requirements to be managed in
short timeframes. - Shortage of skilled workers is gaining significance: Public utilities as attractive
employers.
Characterized by rapidly rising energy prices and a general uncertainty about
energy supply security in Germany, 2022 was a year of major upheavals and
pivotal challenges in the energy industry. The energy crisis acts as a catalyst, and
the transformation needs for municipal city utilities remain high. Renewable
energy and heat generation require significant investments in the entire infrastructure.
Compounding the issue is the shortage of personnel and skilled workers, requiring
innovative responses from utilities. This year’s City Utilities Study, titled “Emerging from the
Crisis with New Strategies,” conducted by EY and BDEW, focuses on different areas of
action and provides solutions for city utilities
The top trend is the expansion of renewable energies.
The politically accelerated energy transition – moving away from fossil fuels and toward
renewable energy sources – sets the pace. The expansion of renewable energies and the
heat transition are the current top trends for city utilities. Local providers play a key role in
contributing directly to achieving political and municipal energy goals. However, the
shortage of skilled workers also affects energy providers: In third place is the recruitment
of new employees. Digitalization, which was in first place in 2022, has significantly lost
priority compared to the previous year and is ranked fifth in the current study, although
awareness of IT security has remained nearly as high.
Questions that municipal utilities are currently addressing
Public utilities are increasingly faced with a set of pressing questions and thematic areas
that could significantly impact their operations in the coming 2 to 3 years. The below graph
shows the extent to which municipal utilities are expected to grapple with these critical
issues.
