This article is published in association with European Investment Bank.
Attended by Minister-President Manuela Schwesig, EIB Vice-President Nicola Beer and the WEMAG Board of Directors signed an investment financing agreement for €220 million to expand electricity grid infrastructure.
The European Investment Bank (EIB) has granted the energy and infrastructure company WEMAG a loan of €220 million that will allow it to finance more than one-third of the power grid investments planned for the next four years. The EIB financing is a strong contribution to ensuring that households, businesses and industry in West Mecklenburg continue to enjoy a reliable supply of renewable electricity – at predictable, competitive prices.
“The EIB’s support will give us the financial power to equip West Mecklenburg’s electricity grid for the future. Expanding our grids is challenging, and requires strong partners. With the EIB by our side, we are securing investments that are equally crucial for climate protection, economic development and security of supply,” said WEMAG CFO Caspar Baumgart.
WEMAG is proof that a municipal energy service provider and grid operator in a rural area can plan and implement extensive grid expansion and digitalisation, if it can access affordable financing at the EU level.
Minister-President of Mecklenburg-Vorpommern Manuela Schwesig remarked, “With the EIB and WEMAG, EU support comes together with regional know-how. Together, we are setting the course to ensure that our electricity grid remains safe, resilient and high-performing into the future. I wish the project every success.”
What this loan means for West Mecklenburg and the energy transition
There are mounting demands on grid expansion in West Mecklenburg due to the growing prevalence of renewable energy, and especially the strong expansion of photovoltaics, as well as the rise of electromobility. Feeding in electricity from large solar parks and decentralised rooftop systems leads to new power flows, and requires more powerful grid infrastructure. With the planned investments, WEMAG will make the grid and power supply more secure, lay the foundation for integrating new energy-efficient technologies, and ensure the electricity grid remains in stable operation for households, businesses and industry in the long term.
The investments will make the grid fit to accommodate more rooftop photovoltaic systems, heat pumps and charging stations for electric vehicles – in the places where people live and work.
EIB Vice-President Nicola Beer said, “With this loan, we are reinforcing not just cables and power lines, but also homes and businesses in West Mecklenburg.
A stable, high-performing grid is necessary in order for there to be safe, affordable and renewable electricity in the future – for families, trade professionals and industry alike. The EIB supports investments in power grids and energy across Germany, to make sure that the energy sector’s transformation reaches local communities. That businesses can come in, electrify their production, and create new jobs. That economic development does not fail due to a lack of infrastructure.”
The green and digital transformation of the power grid is a mammoth task. “As a regional energy supplier, we are responsible for ensuring stable, future-proof grids. This loan will enable important infrastructure measures in rural areas that will serve our customers and the whole region in the long term. We will strengthen and expand our electricity grid to meet the needs of the energy transition,” said Thomas Murche, Chief Technical Officer at WEMAG.
WEMAG Netz GmbH plans to invest a total of €1.2 billion in grid infrastructure in Mecklenburg-Vorpommern by 2033.
The WEMAG battery storage facility, where the agreement was signed, is a milestone in the regional energy transition. Commissioned in 2014 as Europe’s largest commercial battery storage system, it demonstrated the role of energy storage in balancing fluctuations when feeding in renewable energy, and in ensuring grid stability. Today, the lithium-ion storage system with a capacity of 16 MW and 20 MWh is also groundbreaking for offering additional system services, like black start capability and reactive power. It showcases new technical components for creating grid stability under wind and solar power, and is also economically viable. The site is thus a symbol of progress, innovation and sustainable energy in Mecklenburg-Vorpommern.
Between 2023 and 2027, the EIB will provide a further €45 billion to finance renewable energy projects, support the REPowerEU target and end Europe’s dependence on Russian fossil fuel imports.
In 2025, the EIB invested €3.7 billion in German energy projects – from electricity and heating networks to renewable power generation facilities – securing supply for millions of homes and thousands of businesses.
The EIB is the largest financier of energy security and electricity grids in Europe. The loan to WEMAG is part of broader EIB support for electricity and heating networks across Germany – accelerating the energy transition, strengthening energy security, and laying the foundation for reliable, climate-friendly power supply for people and business.
Background information
About the European Investment Bank
The EIB is the long-term lending institution of the European Union, owned by the Member States. Based on its eight core policy priorities, it finances investments that pursue strategic EU objectives.
It supports projects beneficial for climate and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a strong Europe in a more stable and peaceful world.
About WEMAG
Schwerin-based WEMAG AG is a nationwide green energy supplier with regional roots and grid operations in Mecklenburg-Vorpommern and Brandenburg. Together with WEMAG Netz GmbH, it maintains 16 484 km of power lines, from residential connections to overhead wires. By investing in the grid and providing green electricity, WEMAG ensures that its customers in cities and rural areas can benefit from the energy transition – with a more reliable supply and attractive, sustainable products.
The company’s private and business customers can access electricity, natural gas and grid services, as well as planning and construction of photovoltaic and storage systems, electromobility, internet, telephone services, and digital and HD television, all from a single provider.
Founded in 1997, telecommunications firm WEMACOM operates an extensive network in West Mecklenburg, and works with partners to build fibre-optic networks for private and business customers in the region.
WEMAG is guided by regional commitment, environmental protection and sustainability. It makes major investments in renewable energy, advises on energy efficiency, and offers residents the chance to participate through Norddeutsche Energiegemeinschaft eG. Since January 2010, WEMAG has been majority-owned by the municipalities it supplies. www.wemag.com
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