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.
