The European Investment Bank (EIB) has granted a €220 million loan to energy and infrastructure company WEMAG to finance more than one third of the electricity grid investments planned over the next four years in Germany. The financing is intended to help ensure that households, businesses and industry in Mecklenburg-Western Pomerania continue to benefit from a reliable supply of renewable electricity at predictable and competitive prices.

The financing agreement was signed in the presence of Manuela Schwesig, Minister-President of Mecklenburg-Western Pomerania, Nicola Beer, Vice-President of the EIB, and members of WEMAG’s management board.

According to WEMAG, the EIB loan will provide the financial capacity needed to future-proof the electricity grid in Mecklenburg-Western Pomerania. “Expanding our grids is a challenge and requires strong partners. With the support of the EIB, we are securing investments that are equally crucial for climate protection, economic development and security of supply,” said Caspar Baumgart, Chief Financial Officer of WEMAG.

WEMAG is presented as an example of how a municipal energy service provider and grid operator in a rural region can plan and implement extensive grid expansion and digitalisation when access to affordable EU-level financing is available.

Minister-President Manuela Schwesig highlighted the combination of European and regional expertise. “With the EIB and WEMAG, EU support is combined with regional expertise. Together, we are setting the course to ensure that our electricity grid remains secure, resilient and high-performing in the future,” she said, wishing the project every success.

Grid expansion driven by renewables and electrification

The growing need for grid expansion in Mecklenburg-Western Pomerania is driven by the increasing share of renewable energy, particularly the strong expansion of photovoltaic power, as well as the rise of electromobility. Electricity feed-in from large solar parks and decentralised rooftop systems is creating new power flows and requires a more robust grid infrastructure.

Through the planned investments, WEMAG aims to strengthen grid and supply security, lay the foundations for integrating new energy efficiency technologies and ensure the long-term stable operation of the electricity network for households, businesses and industry. The investments will enable the grid to accommodate more rooftop photovoltaic systems, heat pumps and electric vehicle charging stations where people live and work.

EIB Vice-President Nicola Beer said the loan strengthens not only cables and power lines, but also households and businesses in the region. “A stable and high-performing grid is necessary for secure, affordable and renewable electricity in the future—for families, professionals and industry alike,” she said. According to Beer, the EIB supports investments in electricity grids and energy projects across Germany to ensure that the energy transition reaches local communities, enables companies to electrify their production, and supports job creation without being hindered by a lack of infrastructure.

Long-term investment plans and battery storage

WEMAG Netz GmbH plans to invest a total of €1.2 billion in grid infrastructure in Mecklenburg-Western Pomerania by 2033.

The financing agreement was signed at WEMAG’s battery storage facility, which has played a symbolic role in the region’s energy transition. Commissioned in 2014 as Europe’s largest commercial battery storage system at the time, the facility demonstrated the importance of energy storage in balancing fluctuations in renewable generation and ensuring grid stability.

The lithium-ion storage system, with a capacity of 16 MW and 20 MWh, now also provides additional system services, including black-start capability and reactive power. It incorporates new technical components to support grid stability using wind and solar power and is described as economically viable. The site is presented as a symbol of progress, innovation and sustainable energy in Mecklenburg-Western Pomerania.

Broader EIB support for energy infrastructure

Between 2023 and 2027, the EIB plans to provide an additional €45 billion to finance renewable energy projects, support the REPowerEU objective and help end Europe’s dependence on Russian fossil fuel imports.

In 2025, the EIB invested €3.7 billion in energy projects in Germany, ranging from electricity and heating networks to renewable generation facilities, to secure energy supply for millions of households and thousands of companies.

The EIB is described as Europe’s largest financier of energy security and electricity grids. The loan to WEMAG forms part of the bank’s broader support for electricity and heating networks across Germany, aimed at accelerating the energy transition, strengthening energy security and laying the foundations for a reliable and environmentally friendly electricity supply for people and businesses.