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EIB to lend €220 million to WEMAG for power grid expansion in northern Germany

Prime Highlight

  • The European Investment Bank will provide €220 million to WEMAG to modernize and expand the West Mecklenburg power grid to handle growing renewable energy use.
  • The funding supports Germany’s transition to electrification and renewable integration while ensuring a reliable electricity supply for homes and industries.

Key Facts

  • The loan will cover over one-third of WEMAG’s planned €1.2 billion grid investments in Mecklenburg-Vorpommern through 2033.
  • Grid upgrades will manage new power flows from solar parks, rooftop PV systems, EV chargers, and heat pumps, improving stability and reliability.

Background

The European Investment Bank has agreed to lend €220 million to German energy and infrastructure company WEMAG to strengthen the power grid in West Mecklenburg. The move comes as Germany increases investment to handle rising renewable energy use and growing electrification across homes and industries.

The loan will cover more than one-third of WEMAG’s planned grid investments over the next four years. The company said the funds will help modernise and expand electricity networks to manage new power flows from large solar parks and rooftop photovoltaic systems.

WEMAG Chief Financial Officer Caspar Baumgart said the financing will allow the company to upgrade its grid while maintaining a secure power supply. He added that strong financial partners are essential as grid expansion becomes more complex.

Grid pressure in West Mecklenburg has grown as households and businesses install solar panels, electric vehicle charging stations and heat pumps. These changes require stronger networks to keep the system stable and prevent outages. WEMAG said the new investments will improve grid reliability and support the connection of more renewable energy sources.

Mecklenburg-Vorpommern’s Minister-President Manuela Schwesig welcomed the project, saying it combines European funding with regional expertise to ensure a safe and resilient electricity grid for the future.

EIB Vice-President Nicola Beer said a strong grid is the backbone of the energy transition. She said the investments will help companies electrify production, protect jobs and stop infrastructure gaps from slowing economic growth.

WEMAG Netz GmbH plans to invest about €1.2 billion in grid infrastructure across Mecklenburg-Vorpommern by 2033.

The loan agreement was signed at WEMAG’s battery storage site in Schwerin. The facility, launched in 2014, was once Europe’s largest commercial battery system, with 16 megawatts of power and 20 megawatt-hours of storage to balance the grid during fluctuating wind and solar output.

The EIB said it will provide up to €45 billion for renewable energy projects between 2023 and 2027 under the EU’s REPowerEU plan.