Project Description

Market development, local authority market segment

In the coming years, municipalities will face the challenge of developing a sustainability strategy and implementing the energy transition locallyand to ensure the attractiveness of the municipality for citizens and companies. This is also to be achieved by expanding the Digital infrastructure happens – because broadband and smart cities support services of general interest and the attractiveness of a location.

At the same time, budgets are tight, skilled workers are scarce and the complexity of projects is increasing. Many local authorities therefore need partners who can provide planning, financing and operation from a single source.

Here are the specific challenges:

  • Heat and electricity supply in the municipal area must be decarbonized, made more efficient and future-proof.

  • Target network planning for heating networks, integrated network expansion strategies with suppliers must be established

  • Energy optimization of own properties must be driven forward

  • A standardized data structure for Smart City must be established

  • Smart applications, fiber optic networks, 5G and 6G, computing capacities on the edge and data availability are the basis for smart city development

Developments and challenges

  • Legal pressure: Since 2024, the Heat Planning Act has obliged cities and municipalities to draw up municipal heat plans – supported with €500 million in federal funding.

  • Social pressure: Volatility and uncertainty characterize the international and European markets. Society is ageing and needs more care. The shortage of skilled workers and the low level of digitalization of administrative processes mean that changes are slow to take effect.
  • Economic pressure: Municipal revenues are falling, the breadth and cost of tasks are rising. Companies are facing uncertain times. Personnel and construction costs are rising.

  • Technological trends: sector coupling, cold local heating, large heat pumps, battery storage and AI edge computing are increasingly becoming an integral part of municipal infrastructure.

  • Funding landscape: KfW, BAFA and state programs support investments in heating networks, renewable energy systems and energy efficiency measures.

  • Best practices: Successful examples such as municipal heating networks or energy supply contracting for public properties show that projects with clear economic viability and sustainability quickly gain acceptance.

EXAVY services

EXAVY develops and finances turnkey infrastructure projects that combine local energy and digital transformation. As a PPP (Public Private Partnership), the projects can help to solve the challenges facing local authorities.

  • Municipal heating networks & efficiency projects

    • Planning, construction and operation of local and district heating systems with renewable sources (solar thermal energy, geothermal energy, waste heat).

    • Energy supply and energy-saving contracting for public buildings such as schools, daycare centers, town halls and sports facilities.

  • Financing models without equity burden

      • Long-term contracting agreements, participation models with energy cooperatives, integration of subsidies.

      • Project development with optional partial or full exit to relieve the burden on municipal partners.

  • Energy efficiency in existing buildings: consulting and project development of optimal solutions

Benefits for municipalities

  • Compliance with legal requirements and the administrative mandate, citizen satisfaction and long-term attractiveness

  • Planning security: Long-term supply and service contracts with guaranteed prices and services.

  • Freedom of investment: projects are realized without municipal equity – budgets remain free for other tasks.

  • Sustainability & CO₂ reduction: meeting statutory climate targets and improving the environmental footprint.