Energy supply and infrastructure

• We work with geologists to design concepts for geothermal energy supply on site and support clients in all project phases - from the initial idea right through to operation.
• The SONNTAG business economists work with your technical consultants to examine whether and how a deep geothermal project could be implemented and financed at your location.
• At the interfaces to technology and law, we examine the economic viability and provide support in the preparation of an initial feasibility study.
• Based on our decades of experience with the implementation of geothermal projects, we also think about your project from the end and advise you strategically from the initial considerations and implementation steps with regard to all hurdles on the way to successful operation.

• The business economists in the SONNTAG geothermal team work together with lawyers and technical consultants to support deep geothermal projects from the initial idea through to implementation and on to operation.
• At the interfaces to technology and law, we examine the economic viability, create acceptance and help with implementation.
• For geothermal projects, we create complex economic simulations and a wide range of scenario analyses. These serve as the basis for decision-making in committees, negotiations with banks and applications for subsidies to finance the projects.
• In the course of our ongoing project consulting, we work with project partners to develop innovative tariff systems for district heating suppliers as well as risk management concepts and install the necessary controlling instruments.
• In Germany, we have already helped to implement nine major geothermal projects, which we have also supported in operation for many years. We are also involved in the preparation of numerous other national and international projects.
• We offer the following services in particular:
  • Financial modeling - creation of economically, technically and energetically integrated. profitability simulations with variable project parameters.
  • Sensitivity and scenario analyses, Monte Carlo simulation, risk assessment.
  • Economic due diligence.
  • Company valuation in the geothermal industry.
  • Price escalation clauses, price calculation and price review for heat suppliers and heat customers.
  • Short / medium-term liquidity and business planning.
  • Development of risk management concepts in cooperation with project management, technical partners and specialized insurance brokers.
  • Project controlling.
  • Expert opinions on special business issues (tariff models, private investor test, model review, etc.).

• The SONNTAG Geothermal team supports numerous deep geothermal projects in the structuring of project financing and the procurement of subsidies. We have negotiated bank financing of over 300 million euros on the basis of "stress-testable" profitability simulations and obtained more than 60 million euros in funding from KfW and state institutions.
• We prepare the funding applications and also provide evidence management for the funding institutions.Since state funds are used for municipal projects, we design financing solutions that comply with regulatory and EU state aid law and, if necessary, also support the project in the notification process.
• We offer the following services in particular:
  • Advising geothermal projects on project and corporate financing and optimizing the financing structure with regard to rating, key figures and collateral, etc.Support in choosing a legal form that is favorable for financing
  • Reviewing, drafting and negotiating financing and collateral agreements with banks, syndicates and investors.Funding advice and application management for relevant funding programs, including support in the proof of use procedure.EU state aid law review through private investor tests and drafting of entrustment acts.
  • Advice in the context of restructurings.
• Some of our references for project financing and funding procurement:
  • IEP Innovative Energie für Pullach GmbH
  • GEOVOL Unterföhring GmbH
  • AFK-Geothermie GmbH
  • Stadtwerke Waldkraiburg
  • Gemeindewerke Oberhaching GmbH
  • Wärmeversorgung Ismaning GmbH
  • Stadt Garching / EWG GmbH & Co. KG
  • KUMS Kommunalunternehmen Markt Schwaben
  • Salzburg AG
  • Geothermie Holzkirchen GmbH
  • GTU Geothermie Unterschleißheim AG

• Tax and corporate law project structuring
• Contract development and negotiation (plant and grid construction, power plants, deep drilling, energy and water supply, etc.)
• Structuring, preparation and support of bidding procedures and EU-wide award procedures
• Approval procedures (mining and water law, construction, nature conservation and immission control law)
• Energy law (in particular EEG, KWKG as well as EnergieStG and StromStG)
• Energy and water antitrust law, sectoral contract and abuse reviews
• Concession proceedings
• Court proceedings and review proceedings before the public procurement chamber
• You can find out more about our experience in relation to "law and accounting" here

services.

• The examination, identification, and assessment of legal and tax matters of significance for the transaction
• Structured presentation of the results in a due diligence report or Legal Fact Book (sale) with a risk analysis and recommended actions for the further transaction process
• Communication with negotiating partners to clarify open matters
• Legal, tax and financial due diligence
• Due diligence report | Legal Fact Book
• Data room processing (sale) | Data room analysis (acquisition)
• Q&A process

• The SONNTAG geothermal team is driving forward the electricity and heat transition. Since 2004, the team has acted as a central business and legal consultant for deep geothermal projects with a total thermal output of over 200 MW and an investment volume of over 500 million euros.
• The range of consulting services primarily includes classic deep geothermal projects with drilling depths of 3,000 to over 5,000 meters for power generation and district heating supply with extensive network construction.
• Business economists and lawyers work successfully hand in hand in the team. With a great deal of passion and expertise, we have already supported over 60 geothermal projects in the booming region of the Bavarian Molasse Basin, the North German Basin, the Upper Rhine Graben and abroad.
• The team is well connected with many other geothermal experts, such as geologists, engineers and insurance brokers, some of whom have been promoting the use of geothermal energy in Germany "from the very beginning". The team works independently with all geothermal experts.

• In dialog with clients and planners, we draw up contracts for all services relating to deep drilling. We negotiate the contracts in bidding and award procedures and support our clients in the review and evaluation of bids. The contracts are continuously developed and adapted to legal and market developments.
• From working with geologists and drilling engineers and from handling claims, we have the necessary understanding of the technical processes, interfaces and risks that are addressed in the contracts.
• The wells tap into the energy source and represent an investment in the double-digit millions. It is crucial for the success of the project to commission highly qualified companies at fair conditions. The SONNTAG geothermal team has extensive experience in this selection process, including special contracts for all variants of commissioning deep drilling work. These contracts are tailor-made: clear regulations on remuneration, performance deadlines, defect rights, security deposits and a concept for conflict resolution in the event of legal or technical disputes are important.
• The remuneration regulations (operating, waiting and waking hours) must be so precise that the client only pays for services actually rendered. The service deadlines must be carefully coordinated to avoid cost-intensive downtimes and other disruptions. Liability and warranties for deep drilling work differ greatly from those in the construction industry and are negotiated intensively between the parties involved.
• We advise the client in close consultation with the geologists and drilling engineers on the appropriate procurement or contract concept: general contractor concept for the procurement of deep drilling from a single source or commissioning of all trades for deep drilling separately or a middle ground: combination of general contractor package(s) and individual contracts.
• We have contracts for every procurement concept that we have drafted and that have proven themselves in the market from a large number of negotiations. We always adapt our contracts to the client's needs. We know the players and their scope for negotiation. If required, we can also draft and negotiate contracts in English.
• Some of our references for drafting, negotiating and awarding drilling contracts:
  • AFK Geothermie GmbH 2008: GU-Konzept
  • GEOVOL Unterföhring GmbH 2008 (1. Dublette): GU-Konzept
  • Wärmeversorgung Ismaning GmbH 2011: GU-Konzept
  • Geothermie Holzkirchen GmbH 2012 (alt): Einzelgewerke
  • GEOVOL Unterföhring GmbH 2012 (2. Dublette): GU-Konzept
  • BE Geothermal GmbH 2013: GU-Konzept
  • Salzburg AG 2014 (Vorbereitung): Einzelgewerke
  • Geothermie Holzkirchen GmbH 2015 (neu): Einzelgewerke
  • ÜWGeo GmbH 2015: einige Einzelgewerke sowie zwei GU-Pakete
  • Stadtwerke München 2016: GU-Paket und 5 Einzelgewerke
  • STRABAG AG 2017: GU-Konzept
  • Namhaftes deutsches Tiefbohrunternehmen 2019/2020: GU-Konzept
  • Namhaftes österreichisches Tiefbohrunternehmen 2020: GU-Vertragsmuster
  • MTU Aero Engines AG 2022: GU-Vertrag und 6 Einzelgewerke
  • Geoenergie Kirchweidach GmbH 2023: GU-Vertrag und 6 Einzelgewerke