Versicherungskammer and VGH Versicherungen, as lead investors, are providing equity capital for partnerships with municipal utilities to support the energy and heating transition
Pullach/Munich/Hanover. With the new “Regionergy” infrastructure fund, the LHI Group, together with Versicherungskammer and VGH Versicherungen, is providing a strong impetus for the energy transition in Germany: Through partnerships with municipal utilities and regional partners, the fund specifically facilitates investments in wind and solar farms, grids, storage solutions, and other sustainable energy infrastructure. Regionergy provides much-needed equity capital for these projects and strengthens the regional transition toward a sustainable energy supply.
Raising Equity Capital for Municipal Utilities
Versicherungskammer and VGH Versicherungen are participating as lead investors in the Regionergy Fund. The group’s asset management subsidiary, Versicherungskammer Tecta Invest, contributes its many years of infrastructure and energy expertise as an advisor to the fund. This creates a sustainable solution that makes urgently needed equity capital available to municipal utilities—thereby driving the energy and heating transition at the local level.
Close cooperation with regional companies and the smart integration of private-sector and public-sector partners not only expand the financial scope for investment. It also allows for the targeted pooling of expertise and local know-how to create sustainable and efficient energy infrastructures.
The energy transition requires massive investments
The investment needed for the energy transition is enormous: In a study commissioned by KfW, PwC estimates the necessary investments through 2045 at around 1.3 trillion euros. For the expansion of electricity and gas distribution networks alone, as well as grid-connected heat supply at the regional level, approximately 535 billion euros will be needed by 2045. Many municipal utilities and energy providers lack sufficient equity capital to cover these costs.
Regionergy addresses this need and facilitates investments in key areas of the energy transition—from power generation facilities to grids and storage systems. In this way, the fund contributes to the economic performance and long-term viability of the participating regions. Project partners receive tailored equity financing for their projects, while the institutional investors, Versicherungskammer and VGH, invest in stable, sustainable projects that promote security of supply and regional value creation.
Long-term partnerships and sustainable investments
Through Regionergy, investors gain access to promising infrastructure projects and benefit from the expertise of municipal utilities and their regional networks. The partnerships are designed for the long term; the fund itself has a 20-year term with options for extension.
The initial partnerships and investments will be financed with the committed capital from the lead investors. Once the portfolio has been established, other German institutional investors will have the opportunity to participate. The target volume is 250 to 500 million euros in equity capital.
Voices from Corporations and Companies
Andreas Kolb, Chief Financial Officer of Versicherungskammer Group:
“As the lead investor in the Regionergy Fund, we are combining our long-term investment goals with a direct contribution to the energy and heating transition in Germany. Together with VGH Versicherungen, LHI, and the participating municipal utilities, we are creating an innovative solution that mobilizes private capital for the necessary transformation of the energy infrastructure. We are capitalizing on the momentum for sustainable infrastructure investments—and in doing so, we are setting the stage for what we hope will be many more initiatives to follow.”
Jörg Sinner, Chief Investment Officer at VGH:
“Our investments in the Regionergy Fund offer an attractive risk-return profile and are geared toward stable cash flows over the long term. At the same time, we support sustainable and strategically sound projects that strengthen the region’s future viability. As a public insurer, we leverage our networks and build rapport and trust to foster long-term partnerships with municipal utilities.”
Dieter Seitz, Managing Director of LHI Kapitalverwaltungsgesellschaft mbH:
“Our collaboration with the public insurance sector as a strategic partner and equity investor sends a strong signal. It underscores our expertise in infrastructure financing for the public sector and our long-standing experience in investing in renewable energy facilities.”
