Urgent Challenges Ahead

Germany is the European hub for electricity. With its central location in Europe, Germany is the hub for European electricity flows, directly exchanging electricity with nine neighboring countries. A major part of these cross-border flows does not constitute contractually agreed deliveries but transit quantities and loop flows.

The Energy & Infrastructure sectors in Germany face profound transformations.

Amrop helps companies build a solid talent management strategy, identifying the Leaders For What’s Next™ who can enable them to capitalize on evolving opportunities and take their business into new high-growth areas.

Drawing on our experts across the world, Amrop’s dedicated teams of professional consultants take a structured approach to executive search based on their knowledge of the market and its key players, industry trends and a broad network of high-level relationships.

Our practice in Germany is configured to meet the demands of the following industry sub-sectors:

  • Energy: Electricity, Oil and Gas, Nuclear, Green Technology
  • Infrastructure: Road, Rail, Ports, Pipelines, Water, Waste, Telecoms.

Navigating Talent Shortages

In Germany, Amrop has been called on to navigate talent shortages and supply leadership that can embrace diverse stakeholder priorities, while keeping a tight rein on risk management. AmropCivitas has the expertise to provide the top leadership talent needed to meet accelerating growth demands in this fast-changing sector.

Our track record speaks for itself: over the past eight years, we have conducted 100+ search assignments in infrastructure. Some 40% of our work is executed in utilities, 50% in construction and new infrastructure, and the remainder mainly in steel and building materials. More than 70% of our search assignments are at board, CEO, C-Suite, or senior technical level.

Amrop Partners and Researchers combine deep sectorial knowledge with local market expertise, backed by global resources. We work closely with clients in the cost-effective, robust, and sustainable deployment of global talent.

Amrop is happy to discuss your needs and help you fill your open positions.

1Energy

Germany is unique in the number of energy supply companies it has. Alongside a series of major companies, there is a substantial number of small and medium-sized energy suppliers, the majority of which are in municipal ownership. These companies account for more than two thirds of all companies. There are around 2,250 companies active in the German energy market. These companies cover a wide range of activities, including the generation or production of electricity, heating, and natural gas, as well as the operation of energy storage facilities, power line and pipeline networks, and the supply to end-users on a local and regional level. 

Despite numerous mergers, particularly at a regional level, the number of companies active in the German energy market today is considerably higher than prior to liberalization in 1998. Suppliers that mainly serve private customers are predominantly multi-utility companies. They offer their customers a variety of product packages for natural gas, district heating, electricity and often also water. 

Many new suppliers and established energy suppliers now offer their products across multiple regions within Germany or even nationwide. This has led to a slight but steady rise in the number of people switching energy suppliers. The range of products offered by energy providers today includes green energy tariffs. 

Electricity from renewables is generated by wind and hydropower, biomass, municipal waste, and photovoltaics. Renewables delivered a gross figure of around 41 per cent of the (net) electricity generation in Germany. 

Sector coupling is the linking of electricity, heating, mobility, and industrial processes and their infrastructures in terms of energy technology and energy business. Sector coupling is a vital part of the Energiewende [German energy transition]: 

  • Integration of renewables 
  • Decarbonization of all sectors 
  • Supporting security of supply and 
  • Increasing flexibility in the energy system 

Use cases of sector coupling include power-to-gas (PtG) and power-to-heat (PtH) as well as eMobility. 

The focus of eMobility is clearly on the expansion of the charging infrastructure, which has accelerated significantly by 2025. In April 2025, around 142,800 publicly accessible charging points, including 30,050 fast charging points, are available in Germany. That is a remarkable growth of over 400% since April 2020. 

The positions in the city rankings have shifted. Berlin leads the field with an impressive 2,053 new charging points, followed by Stuttgart with 1,456 and Frankfurt am Main with 1,130. 

Despite the considerable progress, there is still a need for action. One in three municipalities still does not have a public charging point, and in terms of fast-charging infrastructure, three out of four municipalities still do not have a public fast-charging point. The German government's goal of reaching one million charging points by 2030 requires further intensive efforts. 

2Infrastructure

In 2025, Germany is taking significant steps to address its long-standing infrastructure challenges with the approval of a EUR 500 billion special infrastructure fund. This massive investment marks a pivotal shift in Germany's fiscal policy and aims to modernize the country's infrastructure across various sectors. 

Key Aspects of the Infrastructure Fund 

  1. Total Investment: EUR 500 billion over 12 years 
  1. Allocation: 
  • EUR 400 billion for federal government projects 
  • EUR 100 billion for federal states and municipalities 
  1. Focus Areas: Energy, transport, digitalization, science, research and development, education, and hospitals 
  1. Climate Goals: EUR 100 billion dedicated to the Climate and Transformation Fund to support achieving carbon neutrality by 2045 

Current Infrastructure Challenges 

Despite being Europe's largest economy, Germany has been grappling with significant infrastructure issues: 

  1. Railways: In 2023, 36% of long-distance trains were not punctual, causing frequent delays and cancellations 
  1. Bridges: As of 2022, 4,000 bridges were identified as needing modernization 
  1. Digital Infrastructure: Only 11% of fixed broadband connections are fiber-optic, one of the lowest rates among OECD countries 
  1. Energy Transition: The need for substantial investment in renewable energy infrastructure to meet climate goals 

Planned Improvements 

The new infrastructure fund aims to address these issues through various initiatives: 

  1. Rail Network Modernization: 
  • Renovation of 4,000 highly utilized track kilometers across 40 high-performance corridors 
  • Modernization of 24,000 kilometers of other network parts 
  • Digitalization of rail infrastructure for increased capacity and faster services 
  1. Road and Bridge Rehabilitation: 
  • Significant investment in modernizing and repairing aging road and bridge infrastructure 
  1. Digital Infrastructure: 
  • Expansion of fiber-optic networks to improve broadband connectivity 
  1. Energy Transition: 
  • Substantial allocation for projects supporting the shift to renewable energy and achieving climate neutrality by 2045 

Economic Impact and Financing 

The infrastructure fund is expected to significantly boost Germany's economic growth and competitiveness. To finance this initiative, Germany will issue state bonds, leveraging its strong credit rating to attract investors. While this approach raises concerns about long-term debt repayment, economists argue that the additional economic growth generated by these investments will more than compensate for the higher debt levels in the medium term. Germany's EUR 500 billion infrastructure fund represents a bold step towards addressing the country's infrastructure deficits and preparing for future challenges. By investing in critical areas such as transportation, digital infrastructure, and energy transition, Germany aims to enhance its economic competitiveness and achieve its climate goals. The success of this initiative will depend on effective implementation and the ability to balance short-term investments with long-term fiscal sustainability. 

Digital Transformation

Despite its status as one of the world's most advanced economies, slow or spotty internet connectivity remains a frustration in Germany. Even without a pandemic, the demands on digital infrastructure are expected to increase significantly in the coming years, driven by the advent of autonomous driving and the digitalization of the industrial sector, known as Industry 4.0. Digital infrastructure is increasingly becoming a prerequisite for innovative technological applications and new business models.

Early 2021, telecommunication companies Deutsche Telekom and Telefonica / O2 announced they would cooperate to close several hundred so-called "gray spots" in Germany. Gray spots are areas where only some internet companies provide internet, which limits internet access to their customers. The cooperation aims to complete 4G network coverage in Germany. Deutsche Telekom said it currently provides 5G access to 80% of Germany and it expects to extend that to 90% of the population by 2022

Budgetary Policy

Governments across the globe understand the need to invest more in infrastructure, and they are looking to the private sector for funding and expertise. This has resulted in greater collaboration and a surge in public-private partnerships.

For years, Germany's federal government has adhered to spending policies guided by the "black zero," a commitment to a balanced budget and to not taking on new debt. While this strategy might be second nature to a society wary of taking out credit, in practice it has led to a significant lack of investment in infrastructure.

On the one hand, years of pinching pennies positioned the EU's largest economy to unleash massive waves of financial relief after the coronavirus pandemic hit. On the other hand, the country's digital infrastructure was ill-equipped to handle the sudden increase in demand as schools and workplaces shifted online. Particularly public services, long known for having lots of red tape and using behind-the-times technology, have come under fire for failing to adapt to the exceptional situation presented by the pandemic.