EIB lends €220m to modernise power grid in northern Germany

Posted on: 12 January 2026

European Investment Bank grants energy and infrastructure company WEMAG loan to finance massive power grid investments.

The agreement was signed at the WEMAG battery storage facility, commissioned in 2014 as Europe’s largest commercial battery storage system. / Credit: WEMAG

WEMAG Netz, which manages electricity and gas distribution networks across parts of Mecklenburg-Vorpommern, Brandenburg, and Lower Saxony in Germany, plans to invest a total of €1.2 billion ($1.4bn) in grid infrastructure in Mecklenburg-Vorpommern by 2033.

In West Mecklenburg specifically, there are mounting demands on grid expansion due to the growing prevalence of renewable energy, especially the strong expansion of photovoltaics, and the rise of electromobility.

Additionally, feeding in electricity from large solar parks and decentralised rooftop systems has led to new power flows and requires more powerful grid infrastructure.

Thomas Murche, Chief Technical Officer at WEMAG, said: “As a regional energy supplier, we are responsible for ensuring stable, future-proof grids.

“This loan will enable important infrastructure measures in rural areas that will serve our customers and the whole region in the long term. We will strengthen and expand our electricity grid to meet the needs of the energy transition.”

With the planned investments, WEMAG will make the grid and power supply more secure, lay the foundation for integrating new energy-efficient technologies, and ensure the electricity grid remains in stable operation.

The investments will make the grid fit to accommodate more rooftop photovoltaic systems, heat pumps and charging stations for electric vehicles – in the places where people live and work.

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WEMAG Chief Financial Officer Caspar Baumgart said the EIB support "will give us the financial power to equip West Mecklenburg’s electricity grid for the future".

“Expanding our grids is challenging, and requires strong partners. With the EIB by our side, we are securing investments that are equally crucial for climate protection, economic development and security of supply.”

Minister-President of Mecklenburg-Vorpommern, Manuela Schwesig, said: “With the EIB and WEMAG, EU support comes together with regional know-how. Together, we are setting the course to ensure that our electricity grid remains safe, resilient and high-performing into the future. I wish the project every success.”

The EIB is the largest financier of energy security and electricity grids in Europe. The loan to WEMAG is part of broader EIB support for electricity and heating networks across Germany.

In 2025, the EIB invested €3.7 billion ($4.3bn) in German energy projects – from electricity and heating networks to renewable power generation facilities.

EIB Vice-President Nicola Beer said: “With this loan, we are reinforcing not just cables and power lines, but also homes and businesses in West Mecklenburg.

“A stable, high-performing grid is necessary in order for there to be safe, affordable and renewable electricity in the future – for families, trade professionals and industry alike. The EIB supports investments in power grids and energy across Germany, to make sure that the energy sector’s transformation reaches local communities.”