This article is published in association with European Investment Bank.
- EIB finances both modern power grids and electric buses
- Long-term EIB financing enables coordinated investment in grids and mobility across the metropolitan region
Hamburg – The European Investment Bank (EIB) is providing strategic financing to two of Hamburg’s municipal companies to support the expansion of the city’s infrastructure.
Hamburg Energienetze GmbH (HNE) will receive EUR 1 billion to back comprehensive modernisation of the city’s electricity distribution grid, while vhh.mobility (Verkehrsbetriebe Hamburg-Holstein GmbH) will obtain EUR 125 million to purchase 188 new electric buses and expand its operating infrastructure.
Both companies are holdings of HGV (Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH), the group holding company of the Free and Hanseatic City of Hamburg, which led the financing arrangements.
In light of the investment needs arising from Hamburg’s energy and mobility transition, the EIB’s favourable financing terms help ensure that public funds are used with maximum impact and support Hamburg’s position as a model city for sustainable infrastructure in Europe.
The loan agreements were signed today by the municipal companies and the EIB in the presence of EIB Vice-President Nicola Beer, Finance Senator Andreas Dressel, State Secretary for Transport and Mobility Transition Martin Bill, and the management of HGV, HNE and vhh.mobility.
Hamburg Energienetze: one billion euros for the energy transition grid
Hamburg Energienetze GmbH will invest around EUR 2.9 billion by 2029 in expanding and modernising the city’s electricity distribution grid.
The EIB is supporting this programme with a framework loan of EUR 1 billion, representing 28 percent of the total financing. The financing will be disbursed in several tranches, with the first funds having been made available in October 2025.
The investment programme includes:
- Around 1,500 kilometres of new and renewed low, medium and high-voltage lines.
- Renewal and construction of substations, as well as expansion of digital grid control technology.
- 120 new switchgear bays.
- Digitalisation of the grid infrastructure to better integrate renewable energy sources.
Expanding electricity grid forms the physical backbone of Hamburg’s energy and mobility transition. Projections indicate that by 2040 the maximum load on the grid is expected to at least double, driven by the rollout of heat pumps, growing e‑mobility and zero-emission buses.
The project is aligned with the objectives of REPowerEU to strengthen security of supply and rapidly increase the share of renewable energy, and contributes to European energy strategy.
vhh.mobility: 125 million euros for 188 new electric buses and depot electrification
vhh.mobility – Germany’s third-largest municipal bus operator – plans to invest up to EUR 337 million in the expansion of e‑mobility in the coming years. The EIB will support this investment with a framework loan of EUR 125 million, representing around 37 percent of the total project volume.
The project includes:
- Procurement of 188 modern electric buses: 120 standard buses, 52 articulated buses and 16 minibuses.
- Conversion and expansion of the Schenefeld depot, including charging infrastructure.
Already today, around one third of vhh.mobility’s roughly 800 vehicles operate with electric drive. Since 2020, the company has procured only zero‑emission buses for Hamburg.
The new vehicles will significantly increase the share of electric buses and contribute to cutting CO₂ emissions, air pollutants and noise, while supporting the achievement of European and national climate targets in the transport sector.
The e‑bus programme at vhh.mobility and HNE’s grid investment programme are closely interconnected: the ramp-up of the electric bus fleet is only possible if the electricity grid is designed to accommodate the growing charging infrastructure. Both investment programmes are coordinated and strategically aligned under the umbrella of HGV – a strong example of the importance of coordinated investment in grids and mobility.
Quotes
Nicola Beer, Vice-President of the European Investment Bank:
“Hamburg shows how European cities can rethink their infrastructure in an integrated way: by combining a strong electricity grid with an electrified public transport system. This is precisely the approach the EIB supports – with targeted financing for networks and clean bus fleets.”
Andreas Dressel, Senator for Finance:
“The financing from the European Investment Bank reinforces the strong investment drive of our municipal companies and core budget. Between 2018 and 2027, we have planned to triple core budget investment per capita to over EUR 1,500, while our municipal companies are also investing billions every year, particularly in the energy and mobility transition. State-of-the-art infrastructure is a key foundation of economic competitiveness and a major locational advantage. With smart financing solutions such as this EIB operation, we can leverage our own resources even more effectively. The fact that EU funds are channelled to Hamburg on this scale via the EIB underlines the city’s role as a European frontrunner and shows our citizens how positively Europe is impacting our city. Our municipal holding HGV, as an investment platform, helps us to deploy these funds efficiently and in a targeted way.”
Katharina Fegebank, Second Mayor and Senator for Environment, Climate, Energy and Agriculture:
“A robust energy infrastructure and the electrification of transport are central preconditions for keeping Hamburg affordable, competitive and fit for the future. This can only succeed with strong partners such as the European Investment Bank. The EIB is helping Hamburg Energienetze to further develop the electricity distribution grid in a targeted way, while vhh.mobility can accelerate the switch to zero‑emission buses thanks to the Bank’s support. This enables Hamburg to move ahead – towards a modern energy supply and modern, affordable mobility that protects the climate and the environment by being emission‑free.”
Martin Bill, State Secretary for Transport and Mobility Transition:
“Hamburg already plays a pioneering role at national level in electrifying its bus fleet, with 38 percent of buses running on electricity today. This financing helps us to continue this path decisively. With funding for up to 188 new electric buses and the necessary expansion of charging infrastructure, we are taking another important step towards cleaner public transport and a successful mobility transition. This means fewer emissions, less noise and better quality of life for all Hamburg residents.”
Oliver Jensen, Managing Director, HGV:
“Our partnership with the European Investment Bank sends a strong signal: it confirms that Hamburg is on the right track in building sustainable infrastructure, as the EIB thoroughly assesses the contribution of projects to the energy transition before approving loans. HGV, HNE and vhh.mobility have done their homework and, in intensive and constructive coordination with the EIB, have been able to provide all the necessary evidence, so we are pleased to celebrate the successful conclusion of the financing with today’s signing. This is precisely the strength of a holding structure like HGV: we take an integrated view of infrastructure – power grid and public transport, energy and mobility transition – and can ensure long-term, coordinated financial planning that goes beyond individual shareholdings.”
Gabriele Eggers, Managing Director, HNE:
“Modernising Hamburg’s electricity infrastructure is a prerequisite for the success of the energy transition and for zero‑emission heating and mobility. Our grid will continue to stand for stability and security of supply in the future. To ensure this, we have to invest – and to be able to invest, we are pleased to have the European Investment Bank at our side as a strong and fair partner.”
Britta Oehlrich, Managing Director, vhh.mobility:
“This loan enables us to make Hamburg an even better place for all our passengers. Every new e‑bus on the streets of the Hamburg metropolitan region means less noise, cleaner air and a visible sign of a city that takes responsibility – for the climate, for people and for mobility. We want to show that sustainable public transport is not just a goal on paper but a lived reality that tangibly improves the everyday lives of our passengers.”
Strategic context: coordinated infrastructure for Hamburg’s energy transition
Both projects are part of a broader strategy pursued by HGV as a platform for public infrastructure investments in Hamburg. HGV pools the city’s holdings in the energy, mobility, water and logistics sectors, thereby enabling coordinated investment planning across company boundaries.
The synergies between grid expansion and the e‑bus fleet are exemplary: electrifying public transport increases demands on the electricity grid, while at the same time a powerful, digital grid is a prerequisite for the reliable operation of a growing charging infrastructure. HGV ensures that these investments are strategically aligned.
The EIB financing also underscores the European dimension of both projects: as the EU climate bank, the EIB targets infrastructure investments that support the achievement of the European Union’s climate objectives and the implementation of the European Green Deal.
Preparation of the EIB financing was supported by EIB Advisory through its ELENA facility, funded under InvestEU.
About HGV – Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH
HGV (Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH) is the group holding company of the Free and Hanseatic City of Hamburg and consolidates a large share of the city’s public enterprises as well as selected private-sector shareholdings. Its portfolio focuses on public transport, transport and logistics, energy and utility infrastructure, and real estate and urban development.
On behalf of the Hamburg Senate, HGV manages its holdings in close coordination with the finance and line ministries, creates synergies through cross‑company and cross‑sector coordination, and thus actively helps to shape Hamburg’s sustainable development. HGV’s core tasks include the financial management and further development of the portfolio, ensuring the liquidity of its holdings and pooling profits and losses within the framework of tax group arrangements.
About Hamburger Energienetze GmbH (HNE)
Hamburger Energienetze (HNE) is Hamburg’s municipal operator of the electricity, gas and hydrogen networks. Its core tasks include expanding and modernising the electricity grid, ensuring a secure gas supply and developing a hydrogen network. This enables more heat pumps and electric vehicle charging points to be operated while maintaining a consistently high quality of supply. Digitalisation of the electricity infrastructure allows HNE to manage and integrate increasing feed‑in from renewable energies. From 2027, Hamburg’s industry will be able to decarbonise large parts of its production via the hydrogen industry network. HNE is also the basic metering point operator for electricity and gas, and its 2 300 specialists work to ensure that households and industry in Hamburg will continue to be supplied with energy safely and reliably in the future.
http://www.hamburger-energienetze.de
About vhh.mobility
vhh.mobility (Verkehrsbetriebe Hamburg-Holstein) is Germany’s third-largest municipal bus operator, with around 3 000 employees and approximately 800 buses at 18 locations. Headquartered in Hamburg, the company transports about 105.5 million passengers per year. vhh.mobility is a partner in the Hamburger Verkehrsverbund (hvv) and operates 181 routes in the Hamburg metropolitan region.
vhh.mobility is a driving force behind the key future fields of e‑mobility and digital mobility. The company put Hamburg’s first e‑bus into service in 2014 and has procured only electric buses for Hamburg since 2020. vhh.mobility is a national pioneer in digitally controlled, on‑demand public transport services and, with hvv hop, successfully launched Germany’s first on‑demand public transport service in 2018.
About the EIB Group
The European Investment Bank Group (EIB Group) is the financing arm of the European Union and one of the world’s largest multilateral development banks. Its shareholders are the 27 EU Member States. In 2025, the EIB Group signed EUR 100 billion in new financing and advisory operations for more than 870 high‑impact projects in eight core areas that support the EU’s strategic objectives: climate and environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. In addition to providing long‑term loans for major infrastructure projects, the EIB Group mobilises private capital for higher‑risk innovative projects and businesses and plays an increasingly important role in Europe’s venture debt, venture capital, guarantee and securitisation markets.
The European Investment Fund (EIF), the EIB Group’s specialist provider of guarantees and equity instruments, facilitates access to finance for small and medium‑sized enterprises and start‑ups across Europe. As an anchor investor, the EIF mobilises private capital through its broad network of partner banks and investment funds and strengthens the venture capital ecosystem to support innovative entrepreneurs in Europe.
In 2023, the EIF, together with six Member States (France, Germany, Italy, Spain, Belgium and the Netherlands), launched the European Tech Champions Initiative, a fund‑of‑funds to support innovative start‑ups. To date, the initiative has backed thirteen European venture capital megafunds and the scale‑up of 38 companies, including eleven unicorns with a market value of over EUR 1 billion.
Images of the EIB Group’s headquarters and management, logos and B‑roll footage are available in our online press kit.
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