By Thomas Lehmann MRICS, CVA, HypZert F, Director at Wüest Partner
With the Bundesrat’s approval of the Economic Development Act (StoFöG), the real estate industry is moving from the margins to the centre of the energy transition. What has long been thwarted by regulation is now possible: open-ended real estate funds are allowed to invest up to 15 percent of their assets in renewable energies and associated infrastructure. This is not a technical detail, but a strategic paradigm shift.
For the first time, real estate funds can maintain their core focus and at the same time systematically channel capital into the energy infrastructure. From open-ended funds alone, an investment volume in the double-digit billion range can be mobilized. Capital that was previously blocked by tax and regulatory hurdles. The removal of these obstacles, especially in investment tax law, now creates the urgently needed room for manoeuvre.
The amendment to the law meets a market that is in fact already further ahead than its regulatory framework. Renewable energies dominate German electricity generation, photovoltaics are growing dynamically, while the expansion of wind energy is falling short of the targets. Staying on the climate path requires not only political ambitions, but above all scalable capital. This is exactly where real estate funds come into play.
For institutional investors, a new quality of portfolio structure is emerging: stable, predictable cash flows from real estate meet high-yield energy investments with a measurable ESG impact. Combined strategies spread risks, reduce CO₂ intensity and at the same time increase the attractiveness of real estate. This can be achieved, for example, through self-generated electricity models or the supply of tenants with regional green electricity.
The decisive factor now is the attitude of the fund providers. The 15 percent option should not be understood as a regulatory accessory. Anyone who treats them only as a marginal issue is wasting strategic potential. On the other hand, those who consistently integrate them into the fund architecture not only position themselves for the future, but also become an active co-creator of the energy transition.
