Local Parties and the (Re)municipalization of Distribution System Operators (DSOs) in Germany: An Analysis of Ownership Change in the 2010s

Literature identifies a significant trend toward (re)municipalising local power grids by German municipalities since the 2010s. Yet, scholars mainly discuss national-level dynamics in light of the energy transition. Local-level factors explaining different intra-state developments and municipal policies remain underexplored. By analysing a novel dataset on local utility ownership, this paper contributes to our understanding of these intra-state differences. It uses partisan theory to check whether left-wing and green parties have a relevant influence on remunicipalisation decisions. The study presents unique information collected from public announcements by German municipalities on the procurement of local power grids between 2010 and 2019. Based on this, it identifies ownership changes of electricity grids in the 2010s. Using novel data for logistic regression, the analysis explores (re)municipalisation determinants. It shows that the importance of local parties is very context dependent. Instead, population size and financial factors prove to be crucial preconditions. Furthermore, the study provides new perspectives on the expansion of the German power grid. As such, it offers new insights for the future governance of the local-level energy transition.