Networks Magdeburg

What Networks Magdeburg does

Netze Magdeburg GmbH is a regulated regional electricity distribution system operator (Verteilnetzbetreiber) that owns and operates the high-, medium-, and low-voltage grid serving the city of Magdeburg in Saxony-Anhalt, Germany. The company is a 100% subsidiary of the municipal utility Städtische Werke Magdeburg GmbH & Co. KG and was created in 2007 (under the name SWM Netze GmbH) to comply with the legal unbundling requirements of the German Energy Industry Act (EnWG); it took its current name in 2014 and absorbed 110 kV operations from HSN Magdeburg GmbH effective January 1, 2016. The grid comprises 77.4 km of HV overhead lines, 1,058.4 km of MV cable, and 2,119.3 km of LV cable with house connections, supported by 1,711 MVA of transformer capacity, serving 172,955 withdrawal points across a 201.7 km² supply area with no current bottlenecks. Annual throughput is approximately 776.6 million kWh with network losses ranging from 0.39% at HV to 3.50% at LV.

The company's product portfolio is a regulated service platform organized around four pillars: (1) Netzanschluss (grid connections) for residential, commercial, and industrial customers including controllable loads and e-mobility infrastructure; (2) Erzeugungsanlagen, which covers generation plant connections from plug-in PV (up to 800 VA) to systems above 100 MW, supported by Netzsicherheitsmanagement and Redispatch 2.0 congestion management and a mandatory annual Steuerbarkeitscheck process; (3) Netznutzung, encompassing grid usage contracts, published regulated charges (Netzentgelte), and balancing of excess/deficit quantities; and (4) Messwesen, including conventional, modern, and intelligent metering systems with a customer-facing Smart Meter Portal. 4,071 intelligent metering systems and 5,023 quarter-hour metering points are deployed. IT integrations include the BDEW industry solution via Connect+/RAIDA for machine-to-machine redispatch communication, EDIFACT-based data exchange with Energy Service Providers, and MaStR registry integration.

Netze Magdeburg earns revenue almost entirely from regulated network charges published in official price sheets and approved by the Bundesnetzagentur: recurring network usage fees (Netzentgelte) for LV, MV, and HV customers, recurring metering fees (Messentgelte) under the Messstellenbetriebsgesetz, and one-time regulated network connection fees. Additional revenue streams include parameterization fees for grid security management equipment (e.g., €97.20 ex-VAT for Funkrundsteuerempfänger setup on 25–100 kW plants). Marketing and customer acquisition are not applicable in the conventional sense: the company serves every grid user in its monopoly territory under non-discriminatory access obligations. The company is DIN EN ISO 50001:2018 certified, GDPR-compliant, and operates under the §111a EnWG dispute resolution regime through Schlichtungsstelle ENERGIE e.V.

Name

Networks Magdeburg

Legal name

Netze Magdeburg GmbH

Website

https://netze-magdeburg.de

Company type

Private

Founded year

2007

Operating status

Operating

Headcount range

11–50 employees

Short description

Netze Magdeburg GmbH is a regulated electricity distribution system operator serving the city of Magdeburg, Germany, operating the HV, MV, and LV grid for approximately 172,955 withdrawal points. It is a wholly-owned subsidiary of municipal utility Städtische Werke Magdeburg, earning revenue from regulated network usage fees, metering fees, and connection fees.

Ownership category

akta.pro rank

Product category

Electricity Distribution Network Operations

NAICS

Electric Power Distribution (221122), Electric Power Transmission, Control, and Distribution (22112)

SIC

Electric Services (4911)

akta.pro primary industry

DERMS & Distributed Grid Orchestration (DER Integration within ADMS) (EUADAEAF)

akta.pro secondary industries

DER Grid Services & Market Enablement (Ancillary Services, Flexibility) (EUADALAK), Meter Installation, Exchange & Field Services (EUADAFAF)

Keywords

• Electricity distribution services
• Grid connection services
• Smart metering operations
• Network usage tariffs
• Grid security management

Headquarters

HQ city

Magdeburg

HQ country

Germany

HQ region

Europe

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Infrastructure, Personnel, Operations, Technology or R&D, Supply Chain, Others

Revenue model

1. Network Usage Fees (Netzentgelte): As a regulated distribution network operator under German energy law (EnWG), Netze Magdeburg generates primary revenue through network usage fees charged to all grid users. These regulated tariffs are published in annual price sheets and cover the costs of operating, maintaining, and expanding the electricity distribution network. Network fees are regulated by Bundesnetzagentur (Federal Network Agency).
2. Metering Services (Messentgelte): Revenue from operating and maintaining metering infrastructure including conventional meters, modern measurement devices (moderne Messeinrichtungen), and intelligent measurement systems (intelligente Messsysteme/Smart Meters). Charges are based on published price sheets for metering services and are regulated under Messstellenbetriebsgesetz (Metering Operations Act).
3. Network Connection Fees: One-time fees for new network connections and modifications to existing connections for households, commercial customers, and generation plants. Fees are regulated and published in price sheets.

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels4 records

Core offering

Netze Magdeburg GmbH operates the regulated electricity distribution network for the city of Magdeburg, Germany, across high (110 kV), medium (30 kV/10 kV), and low voltage (0.4 kV) levels. The company provides grid connection services for residential, commercial, and industrial customers, as well as generation plant operators, metering services (conventional, modern, and smart meters), and grid stability management including Redispatch 2.0 and remote control of controllable loads. Revenue is generated primarily through regulated network usage fees, metering charges, and one-time connection fees under oversight of the Bundesnetzagentur.

Product overview

Netze Magdeburg GmbH is a regional electricity distribution grid operator (Verteilnetzbetreiber) serving the city of Magdeburg and surrounding areas. Its product portfolio is organized as a platform of interconnected grid management services rather than a single software product. The core offering encompasses grid connection services (Netzanschluss) for residential, commercial, and industrial customers — including connections for controllable load devices and e-mobility charging infrastructure. Generation plant connection services (Erzeugungsanlagen) cover the full spectrum from plug-in PV Balkonkraftwerke to large-scale facilities exceeding 100 MW, supported by grid security management (Netzsicherheitsmanagement) and Redispatch 2.0 congestion management. The metering division (Messwesen) provides conventional, modern (moderne Messeinrichtungen), and intelligent metering systems (Smart Meter/iMSys), with customer-facing portals for meter reading and smart meter data access. Network usage services (Netznutzung) cover contracts, charges, privileged tariffs under EnFG, and related billing. Supporting services include an online grid connection portal, energy management certified to DIN EN ISO 50001:2018, consumer protection, and public grid information resources.

Differentiator

Problem solved

Functional benefit

Products and services

• Grid Connection Services (Netzanschluss) Provision of new grid connections and modifications of existing connections for residential, commercial, and industrial customers across low, medium, and high voltage levels. Includes connection point installation, metering setup, and compliance with Technical Connection Conditions (TAB Niederspannung). Available to all electricity users in the Magdeburg service territory as a regulated monopoly service.
• Network Usage (Netznutzung) Regulated network access services including grid usage contracts, network charges (Netzentgelte) for all voltage levels, special network usage charge calculation, privileged network charges under EnFG, and balancing of Mehr-/Mindermengen (excess/deficit quantities) for load profile customers. Open to all electricity suppliers, traders, and large end customers under non-discriminatory regulated terms.
• Metering Services (Messwesen) Installation, operation, and maintenance of conventional meters, modern metering devices (moderne Messeinrichtungen), and intelligent measurement systems (intelligente Messsysteme / Smart Meters) with remote reading capabilities, governed by the Messstellenbetriebsgesetz (MsbG). Available to all grid customers; smart meter cost approximately EUR 20 annually for standard household consumption.
• Generation Plant Connection Services (Erzeugungsanlagen) Grid connection and management services for electricity generation facilities ranging from plug-in PV systems (Balkonkraftwerke up to 800 VA) and systems up to 30 kW, to systems above 30 kW and large-scale systems exceeding 100 MW. Covers photovoltaic, KWK (CHP), and storage facilities, with MaStR registration support.
• Redispatch 2.0 Service Network congestion management service integrating all generation plants above 100 kW and controllable storage facilities into a unified redispatch regime, using the BDEW industry solution and Connect+/RAIDA platform for standardized data exchange with transmission system operators (e.g., 50Hertz).
• Grid Security Management (Netzsicherheitsmanagement) Grid stability service requiring generation plants to be equipped with technical devices (e.g., Funkrundsteuerempfänger) enabling the grid operator to curtail feed-in during grid overload, governed by §13 EnWG and §9 EEG. Initial parameterization fee EUR 97.20 (excluding VAT) for FRE setup at generation plants 25-100 kW.
• E-Mobility Grid Connection Services Grid connection services for electric vehicle charging infrastructure including grid capacity assessment for charging stations (residential and commercial), connection applications, and integration with the grid connection portal. Available to charging point operators and e-mobility service providers.
• Controllable Load Equipment Services (Steuerbare Verbrauchseinrichtungen) Services for connecting and remotely regulating controllable consumption devices (heat pumps, EV chargers, etc.) under §14a EnWG, with 532 agreements currently in place. Allows the grid operator to reduce consumption during grid stress periods in exchange for reduced network charges.
• Standard and Transitional Supply Administration (Grund- und Übergangsversorgung) Network-level administration of the statutory default electricity supplier (Grundversorger) obligation and transitional supply for customers without an assigned supplier contract, administered by Städtische Werke Magdeburg GmbH & Co. KG.
• Energy Service Provider (ESA) Data Services Daily transmission of metered values for registered Energy Service Providers (ESA) under §55(1,3,4) MsbG, processed via EDIFACT format for both registered load profile measurement (RLM) and intelligent metering systems (iMSys). Providers must obtain a market partner ID and sign a framework contract.

Named customers1 record

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

Feature4 records

Partnerships

Five partnerships are on record, tiered core and minor.

• Städtische Werke Magdeburg GmbH & Co. KGcoreStrategic or Co-development PartnerNetze Magdeburg is a 100% subsidiary of Städtische Werke Magdeburg GmbH & Co. KG. The parent company provides shared services including IT, organization, and data processing through Organization und Datenverarbeitung division at Am Blauen Bock 1, Magdeburg. SWM also serves as the main electricity supplier (Grundversorger) for Magdeburg.
• BDEW (Bundesverband der Energie- und Wasserwirtschaft)coreTechnology or IntegrationGerman Energy and Water Industry Association that developed the Redispatch 2.0 industry solution (Branchenlösung) for grid congestion management. Netze Magdeburg implements BDEW-developed standards for data exchange, market communication, and redispatch processes.
• Connect+ / RAIDAcoreTechnology or IntegrationNetwork operator cooperation project providing the RAIDA IT system as a Single-Point-of-Contact for standardized machine-to-machine communication in Redispatch 2.0 processes. Enables automated exchange of master data, movement data, and control commands between grid operators and generation plant operators.
• 50Hertz Transmission GmbHcoreTechnology or IntegrationTransmission system operator (ÜNB) for the control area including Magdeburg. Responsible for grid security management under § 13 EnWG and coordinates redispatch measures. Netze Magdeburg exchanges data and implements measures as directed by 50Hertz.
• Schlichtungsstelle ENERGIE e.V.minorOthersOfficial dispute resolution body for the German energy sector under § 111a EnWG. Located at Friedrichstraße 133, 10117 Berlin. Netze Magdeburg is obligated to participate in conciliation procedures for customer disputes.

Scale indicators10 records

Recent moves8 records

Expansion highlights5 records

Broad incumbents

• Netze BW: Subsidiary of EnBW and one of Germany's largest DSOs serving Baden-Württemberg. Operates the same EnWG-regulated distribution business with similar smart meter and Redispatch 2.0 implementation, but at materially larger scale across a multi-region footprint.
• Westnetz: E.ON subsidiary and one of Germany's largest distribution system operators serving North Rhine-Westphalia and parts of Rhineland-Palatinate. Same regulatory framework, voltage levels, and product mix as Netze Magdeburg, but at substantially larger scale.
• Bayernwerk Netz: E.ON subsidiary and Bavaria's regulated distribution system operator. Comparable EnWG-regulated business model, smart meter rollout, and Redispatch 2.0 implementation, though at a much larger scale covering rural and urban territories across Bavaria.

Direct peers

• Avacon: E.ON subsidiary operating regulated distribution networks in Lower Saxony, Saxony-Anhalt, and surrounding regions. Highly relevant given shared service territory in Saxony-Anhalt with Netze Magdeburg, comparable EnWG framework, and similar DER integration challenges.
• TEN Thüringer Energienetze: Thuringia's regulated distribution network operator, also serving a German eastern federal state under the same EnWG/MsbG framework as Netze Magdeburg. Comparable customer count and asset intensity, with similar product mix of grid connections, metering, and Redispatch 2.0 services.
• Stromnetz Berlin: Berlin's regulated distribution system operator, wholly owned by the Berlin Senate (Vattenfall historically). Closely comparable to Netze Magdeburg as a metropolitan DSO operating a fully urbanized grid with all voltage levels, similar smart meter rollout obligations, and Bundesnetzagentur oversight.
• EWE NETZ: Regional DSO serving Lower Saxony, parts of Brandenburg, and the Rügen area. Comparable regulated monopoly structure, smart meter rollout obligations, and EnWG-based revenue model. Operates similar voltage levels and customer types to Netze Magdeburg.
• MITNETZ STROM: Regional distribution system operator in eastern Germany (Saxony, Saxony-Anhalt, Thuringia, Brandenburg) operated by envia Mitteldeutsche Energie. Most direct comparable to Netze Magdeburg in terms of regional monopoly structure, voltage levels managed, and EnWG regulatory framework. Operates a similar mixed urban-rural service area with comparable scale.

Others

• 50Hertz Transmission: Transmission system operator (TSO) controlling the high-voltage grid including Magdeburg's 110 kV ring. Functions as a regulatory and operational partner for redispatch coordination rather than a direct competitor, but the closest counterparty in the German grid value chain.
• Städtische Werke Magdeburg (SWM): Parent company of Netze Magdeburg and the city's Grundversorger (default electricity supplier). Related but distinct entity: SWM handles retail supply while Netze Magdeburg operates the network. They share services, IT, and customer relationships under EnWG legal unbundling.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/netze-magdeburg-gmbh

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Networks Magdeburg