EIB Grants €450M to EWE for Major Grid Expansion and Green Energy in Germany

In a landmark move marking the 25th anniversary of its Berlin office, the European Investment Bank (EIB) and EWE AG, one of Germany’s major energy providers, have sealed a long-term financing agreement worth up to €450 million—the largest EIB loan EWE has ever received. This substantial investment will bolster northern Germany’s energy infrastructure and play a critical role in accelerating the European green transition.

The funding will support an investment programme exceeding €700 million between 2025 and 2028, focusing on the expansion and digitalisation of electricity grids. The event was attended by senior German government officials, industry leaders, and key stakeholders, underscoring the importance of this strategic collaboration.

Powering the Future: What the Investment Covers

The investment programme aims to:

• Lay over 2,600 kilometers of new underground power lines

• Build and modernise more than 1,100 substations

These upgrades represent a vital enhancement of the “hidden backbone” of Germany’s energy system, improving grid flexibility, resilience, and efficiency, and enabling a significant uptake of renewable energy.

“With over 2,600 km of new underground power lines and more than 1,100 substations, we are working with EWE to build a hidden backbone for a more secure energy supply,” said Nicola Beer, EIB Vice-President.

A Critical Step for Energy Security and Industrial Growth

Frank Reiners, Chief Financial Officer of EWE, emphasized the transformational impact of the financing:

“This financing will help supercharge our investments in grid expansion and digitalisation. It will enable us to rapidly and securely integrate more renewable energy into the power grid and strengthen the security of supply in our regions.”

This upgrade will also enhance the attractiveness of northern Germany for industrial development, positioning the region as a hub for clean energy investment and green industrial transformation.

Record Year for EIB Energy Grid Investments

The agreement comes amid what the EIB describes as a “record year” for power grid investment across Europe. As the EU’s climate bank, the EIB has scaled up financing for power grids in multiple countries including Germany, France, Spain, Italy, and Poland. These investments are crucial to:

• Accommodating new wind and solar installations

• Enabling the electrification of transport and heating

• Reinforcing energy security and system reliability

“2024 was a record year for EIB support for the energy grid and this project shows how we are actively shaping Europe’s green future,” said Beer.

Maximizing Renewable Energy Integration

Currently, approximately 95% of the electricity fed into EWE’s grid in Lower Saxony is generated from renewable sources. With the new infrastructure, the grid will be able to connect an additional 3 gigawatts (GW) of clean energy by 2028. This makes a significant contribution to both Germany’s and the EU’s climate goals.

These enhancements are aligned with:

• Germany’s National Energy and Climate Plan, which targets 80% renewable electricity by 2030

• The EU’s REPowerEU initiative, aimed at reducing emissions and cutting reliance on fossil fuel imports

Supporting Cohesion and Sustainable Growth

Notably, 40% of EWE’s planned investments will be directed to cohesion regions—areas targeted for economic and social development within the EU. This promotes regional equity, enhances local infrastructure, and supports job creation in underserved communities.

The project highlights the EIB’s dual role in:

• Backing strategic energy infrastructure, and

• Promoting social and territorial cohesion within the European Union.

A Strong Signal to Markets and Policy

The EIB’s involvement provides long-term, flexible financing, serving as a signal of confidence to capital markets. By acting as an anchor investor, the EIB is mobilizing additional private and public sector funding, amplifying the overall impact of the programme.

“The EIB is helping to position Europe as a trustworthy and reliable partner around the world,” said Nadia Calviño, President of the EIB. “We are strengthening Europe’s ability to invest in energy, digital, and municipal infrastructure, and shaping a more resilient future.”

The €450 million EIB loan to EWE marks a pivotal moment in Germany’s—and Europe’s—transition toward a cleaner, more resilient energy system. It supports vital grid expansion, enables the integration of renewable energy, and accelerates regional development. As Europe intensifies its climate ambitions, partnerships like this are laying the infrastructure foundations for a sustainable, interconnected, and energy-secure future.