BAKU, Azerbaijan, January 12. The European Investment Bank (EIB) has agreed to lend €220 million ($240 million) to German energy and infrastructure company WEMAG to support power grid expansion in West Mecklenburg, as Germany steps up investment to integrate renewable energy and electrification, Trend reports via the Bank.
The loan will finance more than one-third of WEMAG’s planned grid investments over the next four years, helping to strengthen electricity infrastructure amid rapid growth in solar power, electric vehicles and heat pumps, the EIB said on Tuesday.
WEMAG Chief Financial Officer Caspar Baumgart said the financing would enable the company to modernize and expand its electricity grid while maintaining supply security.
“Expanding our grids is challenging and requires strong partners,” Baumgart said. “With the EIB by our side, we are securing investments that are crucial for climate protection, economic development and security of supply.”
Grid expansion in West Mecklenburg has intensified as large-scale solar parks and decentralized rooftop photovoltaic systems create new power flows, increasing pressure on existing infrastructure. WEMAG said the investments would improve grid stability and allow households, businesses and industry to connect more renewable generation, charging stations for electric vehicles and heat pumps.
Mecklenburg-Vorpommern’s Minister-President Manuela Schwesig said the project combined EU-level financing with regional expertise.
“Together, we are ensuring that the electricity grid remains safe, resilient and high-performing in the long term,” she said.
EIB Vice-President Nicola Beer said the loan was part of the bank’s broader effort to ensure that the energy transition delivers tangible benefits at the local level.
“A stable, high-performing grid is essential for secure, affordable and renewable electricity,” Beer said. “These investments help businesses electrify production, create jobs and prevent infrastructure bottlenecks from holding back economic development.”
WEMAG Netz GmbH plans to invest around €1.2 billion in grid infrastructure in Mecklenburg-Vorpommern by 2033, the company said.
The loan agreement was signed at WEMAG’s battery storage facility in Schwerin, which was commissioned in 2014 as Europe’s largest commercial battery storage system. The 16-megawatt, 20-megawatt-hour lithium-ion facility provides grid-balancing services and supports system stability under fluctuating wind and solar generation.
The EIB said it will provide up to €45 billion between 2023 and 2027 to support renewable energy projects under the EU’s REPowerEU plan, aimed at reducing dependence on Russian fossil fuels. In 2025 alone, the bank invested €3.7 billion in German energy projects, including electricity and heating networks and renewable generation.
The EIB is the European Union’s long-term lending arm and its largest financier of energy security and electricity grid projects across the bloc.