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European Union

European Investment Bank and EWE AG Announce EUR450 Million Loan for Energy Infrastructure Upgrade

Strategic Insights

— 1 min read

The European Investment Bank and EWE AG have finalized a long-term credit facility of up to EUR450 million, marking the largest loan ever received by EWE. This significant investment will support a comprehensive program to upgrade energy infrastructure in northern Germany, including the laying of over 2,600 kilometers of new underground power lines and the construction and modernization of over 1,100 substations. This massive undertaking is expected to total more than EUR700 million between 2025 and 2028, with the goal of rapidly and securely integrating more renewable energy into the power grid and strengthening energy supply in the region.

Key Takeaways:

  • The EUR450 million loan from the European Investment Bank to EWE AG is the largest loan ever received by EWE, supporting a comprehensive program to upgrade energy infrastructure in northern Germany.
  • The investment program includes laying over 2,600 kilometers of new underground power lines and constructing and modernizing over 1,100 substations, totaling more than EUR700 million between 2025 and 2028.
  • The program is expected to enable an additional 3 gigawatts (GW) of renewable generation capacity to be connected by 2028, a crucial contribution to German and European climate targets.
  • The investment supports Germany's national energy and climate plan, aiming for an 80% share of renewable energy in electricity use by 2030.
  • 40% of the investments will go to cohesion regions, promoting economic and social cohesion.
  • The EIB's long-term, flexible financing provides a stable basis for EWE to implement its investment plans, diversifying funding sources and sending a positive signal to capital markets.

Statistics:

  • EUR450 million: The size of the long-term credit facility finalized between the European Investment Bank and EWE AG.
  • EUR700 million: The total amount of funding for the energy infrastructure upgrade program between 2025 and 2028.
  • 2,600 kilometers: The length of new underground power lines to be laid as part of the investment program.
  • 1,100: The number of substations to be constructed or modernized under the program.
  • 3 gigawatts (GW): The additional renewable generation capacity to be connected by 2028 as a result of the investment.
  • 80%: The target share of renewable energy in electricity use in Germany by 2030.
  • 2024: The year in which the European Investment Bank reported a record year for power-grid investment across Europe.

Sources:

  • European Investment Bank (2023)
  • European Investment Bank (2024)

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