The European Investment Bank (EIB) is lending €220 million to WEMAG, a regional energy company in West Mecklenburg, Germany, to upgrade its electricity grid. The financing will cover more than a third of the power network investments WEMAG has planned for the next four years, the EIB announced. The money will help the company handle rising demand from solar panels, heat pumps, and electric vehicles while keeping electricity reliable and affordable for homes and businesses.
West Mecklenburg faces growing pressure on its grid as renewable energy expands. Large solar farms and thousands of rooftop panels are feeding power into the network, creating new flows that require stronger infrastructure. Electric vehicles and heat pumps are adding to the load. Without upgrades, the grid won’t be able to handle it all. WEMAG plans to use the loan to reinforce cables, build substations, and digitalize operations so the system can absorb more clean energy without breaking down.
“The EIB’s support will give us the financial power to equip West Mecklenburg’s electricity grid for the future,” said WEMAG CFO Caspar Baumgart. “Expanding our grids is challenging, and requires strong partners.”
The company operates in a rural area where financing large infrastructure projects can be difficult. Access to affordable EU-level loans makes the difference between moving forward and standing still.
EIB Vice-President Nicola Beer and WEMAG’s board signed the agreement at the company’s battery storage facility—a site commissioned in 2014 as Europe’s largest commercial battery system. “With this loan, we are reinforcing not just cables and power lines, but also homes and businesses in West Mecklenburg,” Beer said. She pointed out that a stable grid is essential for families, businesses, and industries to access safe, affordable, and renewable electricity. The EIB wants to make sure Germany’s energy transformation reaches local communities and doesn’t stall because of weak infrastructure.
WEMAG Netz plans to invest €1.2 billion in grid infrastructure across Mecklenburg-Vorpommern by 2033. Mecklenburg-Vorpommern’s Minister-President Manuela Schwesig attended the signing and called it a combination of EU support and regional expertise. The EIB has committed €45 billion between 2023 and 2027 for renewable energy projects across Europe and invested €3.7 billion in German energy projects last year alone.
