€220M EIB Investment Powers Smart Grid Expansion in West Mecklenburg, Accelerating Germany’s Energy Transition

“The EIB’s support gives us the financial strength to equip West Mecklenburg’s electricity grid for the future,” said Caspar Baumgart, CFO of WEMAG.

The European Investment Bank (EIB) has signed a €220 million investment financing agreement with regional energy and infrastructure company WEMAG, marking a major milestone in the digital and green transformation of electricity grids in rural Germany.

The agreement—signed in the presence of Minister-President Manuela Schwesig, EIB Vice-President Nicola Beer, and WEMAG’s Board of Directors—will finance more than one-third of WEMAG’s planned grid investments over the next four years, enabling faster integration of renewable energy, electric mobility, and digital grid technologies across West Mecklenburg.

Turning Rural Grids into Innovation Hubs

The EIB-backed investment will modernize and expand electricity infrastructure to handle rapidly increasing volumes of solar power, decentralized rooftop photovoltaics, heat pumps, and electric vehicle charging stations. Advanced digitalisation and grid-strengthening measures will ensure reliable electricity supply at competitive and predictable prices for households, businesses, and industry.

“The EIB’s support gives us the financial strength to equip West Mecklenburg’s electricity grid for the future,” said Caspar Baumgart, CFO of WEMAG. “Grid expansion is complex and capital-intensive. With a strong European partner, we are investing in infrastructure that is critical for climate protection, economic growth, and security of supply.”

WEMAG’s project demonstrates how municipal and regional utilities—even in predominantly rural areas—can lead the energy transition when they gain access to affordable EU-level financing and advanced grid technology.

Smart Infrastructure for the Energy Transition

The investment will:

• Strengthen grid capacity for large solar parks and decentralized rooftop PV systems

• Enable large-scale deployment of heat pumps and EV charging infrastructure

• Improve grid stability, resilience, and real-time control through digitalisation

• Lay the foundation for future energy-efficient technologies and flexible consumption models

“With the EIB and WEMAG, European support meets regional expertise,” said Manuela Schwesig, Minister-President of Mecklenburg-Vorpommern. “Together, we are ensuring that our electricity grid remains safe, resilient, and fit for the future.”

Innovation Proven in Practice

The agreement was signed at WEMAG’s battery storage facility, a flagship project of the regional energy transition. Commissioned in 2014 as Europe’s largest commercial battery storage system, the site demonstrated early on how energy storage can stabilize grids dominated by wind and solar power.

Today, the 16 MW / 20 MWh lithium-ion system provides advanced system services including black-start capability and reactive power, proving that grid-scale storage can be both technically essential and economically viable.

“This loan strengthens not just cables and power lines, but homes and businesses,” said EIB Vice-President Nicola Beer. “A stable, high-performing grid is the backbone of affordable, renewable electricity—and a prerequisite for economic development and job creation.”

A Call to Early Adopters and Energy Innovators

As WEMAG plans €1.2 billion in total grid investments by 2033, the project sends a clear signal to:

• Regional and municipal utilities seeking scalable models for grid modernisation

• Energy-tech and smart-grid providers ready to deploy digital solutions in real-world networks

• EV infrastructure, heat pump, and solar companies looking for grid-ready regions

• Early adopters of flexible energy technologies that depend on stable, intelligent networks

With the EIB committing €45 billion to renewable energy financing between 2023 and 2027 and investing €3.7 billion in German energy projects in 2025 alone, Europe’s largest public bank is accelerating the shift toward secure, climate-friendly, and digitally enabled power systems.

West Mecklenburg is emerging as a living laboratory for the future of energy—and an open invitation for innovators ready to plug into the next generation of Europe’s electricity grid.