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.