Energy in transition: How municipal utilities are strategically securing their future
Public utilities under pressure: Why transformation now requires strategic leadership
The energy sector is in the midst of a historic period of change. What was long considered stable, predictable, and heavily regulated is increasingly coming under pressure. In the latest episode of "Hope is not a strategy," Christian Underwood talks to Dominik Wirth, commercial director of Zwickauer Energieversorgung, about the profound transformation of municipal utilities—and why hope alone is not a viable concept for the future.
From reliable supplier to permanent construction site
Decarbonization, digitalization, and decentralization are no longer just buzzwords, but rather shape the everyday lives of municipal energy suppliers. The phase-out of fossil fuels, the massive expansion of renewable energy generation, and the electrification of mobility and heating pose new challenges for both networks and organizations. Added to this are enormous investment requirements, staff shortages, and a regulatory environment that leaves little room for maneuver. Dominik Wirth impressively describes how much the role of municipal utilities has changed. Previously stable revenue models—such as in the gas business—are disappearing. At the same time, the demands on supply security, grid stability, and climate neutrality are increasing. Municipal utilities are therefore under pressure not only technically, but above all strategically.
District heating, network expansion, and new business models
A central theme of the episode is the heat transition. District heating is considered one of the most important levers for climate-friendly heat supply in cities. However, expansion is expensive, time-consuming, and heavily dependent on political conditions. Dominik Wirth makes it clear that without planning security and funding, this mammoth task is almost impossible to accomplish. At the same time, municipal utilities must tap into new business areas to compensate for lost revenue. The transition from a traditional utility company to a modern energy service provider is not a sure-fire success. Cooperations, platform models, and white-label solutions are becoming increasingly important—not out of a romantic desire for innovation, but because of resource scarcity. Every strategic step must be well thought out.
Strategy is not a side project
A key learning from the discussion: Transformation cannot be managed "on the fly." Municipal utilities generally know what needs to be done—but often lack the time to set clear priorities and consciously rule out options. Dominik Wirth therefore advocates a structured, orderly strategy process. Not as a glossy concept, but as a pragmatic management tool that provides orientation and focuses scarce resources. This also involves leadership and organization. Digitalization, automation, and new business models are changing roles, skills, and ways of thinking. Transformation is always a change project—for managers as well as for employees. A willingness to learn, a basic understanding of technology, and the ability to tolerate uncertainty are becoming crucial skills.
Public utilities as regional anchors of stability
Despite all the challenges, one point remains central: municipal utilities are much more than just energy suppliers. They are regional anchors of stability, ensuring quality of life and enabling public transport, swimming pools, and cultural offerings. That is precisely why their future is so much in focus. Dominik Wirth is convinced that the structure of municipal utilities will change and consolidate—but their regional importance will remain. Models such as "municipal utilities as a service platform" could be a middle ground between complete independence and complete privatization. Cooperation instead of isolation is becoming a strategic principle.
For whom this episode is particularly relevant
This podcast episode is aimed at managing directors, executives, and decision-makers in the energy and utilities industry who no longer want to sit out the transformation. It shows in a realistic, honest, and practical way what it means to lead strategically in a highly regulated industry—without sugarcoating, but with a clear stance.
🎧 Listen now and understand why transformation is not a project with an end date for municipal utilities, but rather an ongoing strategic task.
SHOWNOTES
Dominik Wirth https://www.linkedin.com/in/dominik-wirth-5a2919187/
Christian Underwood https://www.linkedin.com/in/christianunderwood/
StrategySummit 2026 https://www.strategyframe.ai/strategysummit2026
All links https://linktr.ee/strategyframe