MVV: Successful balance of climate protection and competitiveness

“MVV has pursued a course that involves successfully combining climate protection and competitiveness for years now. In this, we view ourselves as shapers of sustainable change”, explained the Chief Executive Officer of MVV Energie AG, Dr. Georg Müller, at this year’s Annual General Meeting of the energy company, held at Congress Center Rosengarten in Mannheim on Friday. Consistent with this approach, MVV’s activities are focused on four areas of action: energy efficiency, circular economy, renewable energies, meaning green electricity and green heat, and achieving negative emissions.

MVV’s CEO called on the future Federal Government to “align energy policy and economic policy more closely than before. The various elements of the energy transition have to be conceptualised along system-based lines to advance Germany towards climate neutrality while keeping the costs involved in this transformation low.” For MVV, as a broad-based energy company, a system-based perspective formed part of its DNA, explained the CEO. “That is because we are continually working on solutions across all our business fields and because we supply energy to a variety of customer groups, ranging from private households to industrial companies. That means we see the need for the energy system to change, and more rapidly now than before, on a daily basis.” The areas of energy policy where MVV sees an urgent need for action relate above all to regulations for using green heat potential, transforming gas grids, securing the electricity supply from renewable energies and making this more flexible, as well as CO₂ capturing and negative emissions.

Further investments in transformation

“We can only build an energy system that is fit for the future with capital that we make available for sustainable growth”, the CEO additionally stressed. MVV has therefore further stepped up its pace of investment and in the 2024 financial year invested a total of Euro 417 million, its highest volume since 2015. He added: “We will further increase our investments in the coming years. This way, we are strengthening our foundation for long-term and profitable growth.” Here, MVV is focusing its investments on green heat, expanding renewable energies, using energy from waste and biomass plants and reinforcing grid infrastructures for the energy transition.

Shapers of change with #climatepositive course

With its investments, MVV is at the same time demonstrating that its target of becoming “#climatepositive by 2035” is the compass guiding its transformation pathway. In line with its Mannheim Model, the energy company is consistently implementing this approach in its heat and electricity activities and with its green customer solutions.

In the heat business, the key focus is on making district heat green. MVV is converting all its district heat generation for Mannheim and the region to green energy sources by 2030. The energy company realised the first stage of the expansion required for this heat transition in 2020 by connecting the energy from waste plant. In 2024, MVV completed the second stage with its first river heat pump, phosphorous recycling plant, backup and peak load plants and its biomass CHP plant. By issuing a call for tenders for a second, significantly larger river heat pump, accessing geothermal energy and making preparatory plans to use industrial waste heat, MVV is already in the third and final expansion stage needed to reach 100-percent green heat. Comparable targets tailored to local conditions are also in place for the MVV Group’s other major locations in Offenbach and Kiel.

In its electricity activities, MVV has extended its portfolio over the past five years by around 120 megawatts of wind power and approximately 65 megawatts of solar power. Overall, MVV intends to increase the volume of electricity it generates from renewable energies to around 2,000 megawatts and, by 2035, to convert its then remaining fossil-based generation to green energies.

MVV’s customer solutions are also governed by the target of becoming 100-percent climate neutral by 2035. In this, the company is positioning itself across all customer groups as a system provider with solutions packages for customers’ own energy transitions – for example by offering heat pumps on a decentralised basis for private and commercial customers.

At the same time, MVV is pressing further ahead with projects intended not only to offset its own unavoidable residual emissions but even to achieve negative overall emissions and, in this combination, become #climatepositive by 2035.

Transparency on future of gas grid

“By announcing our goal of withdrawing from the gas grid by 2035, we became the first company in Germany to openly and directly address the cost risks of natural gas and the resultant consequences. And we are now receiving ever more support for taking this course”, continued the CEO. In this, the energy company is also accounting for the municipal heat plan of the City of Mannheim, which sets out the perspective of basing all heating on district heat and heat pumps. The legal framework for this targeted withdrawal is provided by the European Union’s Internal Gas Market Directive, which has to be implemented in national law by August 2026.

MVV supports its customers in deciding on the heat solution that best meets their needs and, with its partners, informs its customers about planning, installation, subsidies and financing options. In cooperation with the City of Mannheim, the Chamber of Trade and trade guilds, the energy company has established the Heat Transition Academy (“Wärmewende Akademie”), the first organisation of its kind in Germany.

Stability in a difficult market climate

“Although the conditions in which MVV has to operate are challenging in the current year, as was also the case in the past 2024 financial year, we have successfully asserted ourselves”, commented the CEO with regard to the company’s business performance. MVV achieved excellent results in the 2024 financial year, with adjusted EBIT of Euro 426 million. In view of this earnings performance, the Executive and Supervisory Boards are proposing an increase in the regular dividend by Euro 0.10 per share to Euro 1.25 per share for approval by the Annual General Meeting. This corresponds to a dividend yield of 4.0 percent for MVV’s share. “With an equity ratio of almost 43 percent at the end of the 2024 financial year, we have at the same time further strengthened the company’s internal financing capability and reinforced its foundation for future growth”, added Dr. Müller.

“Our broadly based business model will continue to provide us with stability in the 2025 financial year as well”, the CEO continued. Despite the difficult market climate, the company maintained its high level of earnings in the first quarter of the 2025 financial year, with adjusted EBIT of Euro 122 million. On this basis, MVV can confirm its forecast and, from an operating perspective, still expects to generate adjusted EBIT of between Euro 350 million and Euro 400 million in the 2025 financial year.

Final Annual General Meeting of Dr. Müller as Chief Executive Officer

“MVV has consistently tackled the sustainable transformation and combined this with business success. We have shown that in day-to-day reality both aspects are possible: climate protection and competitiveness!”, stressed Dr. Müller by way of conclusion. He is due to leave MVV as of 31 March 2025 after more than 16 years as the company’s CEO. Dr. Gabriël Clemens will assume this role as of 1 April 2025.