BAKU, Azerbaijan, April 21. The European Investment Bank (EIB) and Commerzbank have signed a landmark cooperation agreement at Hannover Messe, marking the first-ever transaction under the new pan-European EIB Grid Package, Trend reports via the EIB.
The deal is set to mobilise up to €2 billion in investments for electricity grids across Germany and other EU Member States.
The initiative aims to ease financing constraints for grid expansion and modernisation, which are essential for integrating renewable energy into the system and reducing energy costs for both households and businesses.
Under the agreement, the EIB will provide Commerzbank with a €250 million portfolio guarantee covering up to 50% of the risk related to performance and advance payment guarantees for equipment manufacturers. This structure allows Commerzbank to expand its guarantee capacity, free up regulatory capital, and increase financing support for grid-related projects.
As a result, the bank will be able to offer additional guarantees to manufacturers of critical grid components such as cables, transformers, and other electrical equipment. This is expected to strengthen European supply chains and accelerate the deployment of infrastructure including transmission lines, substations, transformers, and cable networks.
The cooperation is part of the EIB’s broader Grid Package, designed to support investment in electricity networks and energy storage while reinforcing Europe’s industrial base for grid equipment. Each operation under the program is expected to unlock up to €4 billion in additional grid-related investments across the European Union.
The EIB–Commerzbank agreement represents the first transaction under this framework, setting the stage for similar financing operations aimed at accelerating Europe’s energy transition and grid resilience.