Stuttgart’s Innovative financing schemes

The concept of Intracting was first experimented and adapted by the City of Stuttgart. Intracting proved highly efficient at reducing energy and water costs. It is the success of this financing model that prompted other cities and institutions to adapt it to their own context.

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Intracting: Internal performance contracting

The municipal internal performance contracting scheme, also known as “Intracting” in Germany, is based on the “Contracting” concept but is entirely financed from municipal budget funds. The energy department finances cost-efficient energy and water saving measures. The savings made by the technical department or municipally-owned company on their energy bill are used to repay the energy department until full recovery of the investment capital.

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