Modernization, renovation, maintenance and refurbishment backlogs

Picture of a road full of potholes, in the background there is a car driving away

Source: Mattoff - stock.adobe.com

Terms such as modernization, renovation and maintenance are often used imprecisely. In the present context, the issue is structural or modernization work to improve the energy efficiency of buildings, to eliminate damage, to restore the function and usability of a building or building infrastructure, or to adapt it to current requirements [1; 2]. Renovation measures usually go well beyond maintenance, involving structural interventions on a larger scale [3]. A failure to make sufficient investment in renovation over decades leads to a renovation backlog.

The increase in freight transport, frequent overloading of trucks [4] and ageing of the transport infrastructure due to weather influences are placing increasing pressure on Germany’s roads [5]. Many of the bridges built in the 1960s and 1970s are also showing their age [4]. A study conducted in 2023 by Difu, the German Institute of Urban Affairs, found that of the country’s municipal road network, 714,000 kilometres in length, one-third exhibited major defects, and almost one road bridge in two in the municipalities was in poor condition [6]. Modernization of the transport infrastructure is also necessary for completion of the desired shift to electromobility (expansion of the charging station infrastructure) [7] and improved local public transport services, particularly in rural areas [8]. The rising proportion of traffic accounted for by cyclists (including those using electric bicycles) [9] makes expansion of the cycle infrastructure necessary [10; 11]. Finally, a considerable part of the German rail infrastructure is in need of renovation and modernization: 15% of local public transport lines are in poor condition [6]. Beginning in 2024, 4,000 kilometres of track in the Deutsche Bahn network are also to be fully renovated [12]:

The energy transition aims to achieve climate neutrality by 2045, and requires an improvement in energy efficiency and conversion work on the power distribution grid. In addition to expedited expansion of wind and photovoltaic farms [13], a transformed power distribution grid is intended to distribute wind power from the north to wide areas of southern Germany and thereby ensure security of supply in the south as well as in the north [14]. Smaller distribution grids are therefore becoming more important, and applications for connection to the grid are increasing. In addition, conversion work on the power distribution grid requires numerous new functionalities to be implemented [15].

The German Energy Efficiency Act (EnEfG) requires public authorities, companies and data centres to take energy-saving measures in line with EU rules from 2024 onwards [16]. Energy-efficient renovation of buildings by means of insulation, and installation of photovoltaic systems and heat pumps, plays an important role here. In the public sector, schools and universities are primarily affected. Between 2017 and 2025, around €29 billion will need to be spent nationwide on the renovation of the university buildings stock alone [17]. The investment backlog for schools amounts to more than €45 billion [18]. An expert assessment of the energy-efficient renovation of hospitals has yielded mixed results. Here too, however, the overall need for renovation is high [19].

Public and private buildings in Germany account for 40% of the total energy consumption [20]. The energy efficiency of around 30% of all residential buildings in Germany is unsatisfactory [21].

The digital transformation of trade and industry, public administration and private households requires a broadband infrastructure covering as much of the country as possible [22]. Full coverage with fibre-optic cable and the 5G mobile communications standard is to be attained by 2030 [23].


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Dipl.-Psych. Angelika Hauke

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Dipl.-Übers. Ina Neitzner

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