Germany: EIB supports SachsenEnergie grid expansion with €400 million for the future of energy access in eastern Saxony

The operation will secure financing for the expansion, digitalisation and stability of the electricity grid.

The European Investment Bank (EIB) has granted the SachsenEnergie Group a €400 million credit line to continue electricity grid expansion in eastern Saxony. The funds will go to upgrade and expand electricity networks and provide long-term energy security in the region. SachsenEnergie and grid operator SachsenNetze plan to invest a total of €732 million by 2027. This EIB loan will make a significant contribution to securing the energy supply for households and companies, in the face of rising demand for electricity. Modern grid infrastructure allows for better integration of electricity generated from renewable sources.

EIB Vice-President Nicola Beer said, “Reliable access to affordable energy is the key to our economic resilience and to staying competitive on the international stage. That is why development of renewable energy must go hand in hand with upgrades to our distribution networks. This financing for SachsenEnergie constitutes one of the largest single investments the EIB has ever made in a German municipal energy supplier. With high-performance electrical substations, grid nodes and high-voltage power lines, we are advancing the energy transition together to ensure sustainable growth in eastern Saxony.”

SachsenEnergie Group CEO Frank Brinkmann explained, “Stable energy networks are the backbone of industrial development and the energy transition. SachsenEnergie is faced with an enormous challenge when it comes to financing the necessary grid expansion on such an unprecedented scale. That is why reliable, forward-looking financial partners like the EIB are so essential. We thank the EIB for the trust it has placed in us in opting to support our expansion.”

Targeted investment for a stronger grid

Both debt and equity will be used to finance the grid infrastructure investments, for an optimal, sustainable and secure financing structure. The EIB loan will be used to finance the expansion, upgrade and digitalisation of the electricity distribution networks that supply the city of Dresden and the districts of Bautzen, Görlitz, Meissen and Saxon Switzerland-Eastern Ore Mountains.

The official signing ceremony for the loan agreements took place today at the Dresden-Räcknitz electrical substation, attended by EIB Vice-President Nicola Beer, SachsenEnergie Group CEO Frank Brinkmann and CFO Axel Cunow, and Director of SachsenNetze Steffen Heine. The substation is set to receive a larger, more powerful 110 kV switchgear. That is just one on a long list of measures to strengthen the electricity network in Dresden, Saxony’s capital, to ensure security of the energy supply for the population and the expansion of industry in north Dresden (Infineon, ESMC, etc.). In 2025, SachsenNetze’s focus is on expanding the high-voltage grid. Alongside Dresden, key projects include works on the node in Horka (Görlitz district) east of Niesky, and the expansion of the substation in Zeithain (Meissen district), to create sustainable energy infrastructure for stable power grids.

By 2028, SachsenNetze plans to optimise, reinforce, refurbish or lay 170 km of high-voltage power lines, and to expand or construct 20 substations. Further works will be completed on 125 km of high-voltage power lines and 29 substations between 2029 and 2033. Long-term plans include the extensive refurbishment of a further 280 km of power lines and 25 substations by 2045. The medium-voltage grid will also be massively expanded to meet the rising electricity demand in the region.

More information on the grid expansion

Find details on SachsenNetze’s plans for the grid expansion here: www.sachsen-netze.de/netzausbau (German only). The SachsenEnergie Group’s goal is to create long-term security of the electricity supply for Dresden and eastern Saxony. In view of the increasing demand, proactive infrastructure expansion is essential for a stable energy future.

About the EIB

The European Investment Bank is the long-term lending institution of the European Union, Its shareholders are the EU Member States. It finances investments that contribute to EU policy objectives. EIB projects strengthen competitiveness, sustainable development, and social and territorial cohesion. They promote innovation and accelerate the transition to climate neutrality. The EIB Group, which also includes the European Investment Fund, signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Agreement. The EIB Group does not fund investments in fossil fuels. It is on track to deliver on its commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in its Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects that directly contribute to climate change mitigation and adaptation, and to a healthier environment.

EIB and energy security: Between 2023 and 2027, the EIB will provide an additional €45 billion to finance renewable energy in support of the REPowerEU objective of ending Europe’s dependence on Russian fossil fuel imports. In December 2023, the EIB also announced that it would provide €5 billion in guarantees as part of the EU wind package to support lending to the wind power industry. Through these measures, the EIB is making a significant contribution to Europe’s energy independence.

About the SachsenEnergie Group

As the largest municipal utility in eastern Germany, the SachsenEnergie Group provides some 600 000 customers with reliable access to energy, water, telephone service, internet and television, as well as related services and state-of-the-art infrastructure. SachsenEnergie is a partner of the state of Saxony and the city of Dresden. It serves more than 160 municipalities with tailored service packages and product offerings for modern municipal energy management, renewable energy, e-mobility and telecommunications. With more than 4 000 employees and an annual turnover of €5 billion, SachsenEnergie is a vital energy hub in the heart of Saxony.

SachsenEnergie has total energy sales of 44 330 GWh. The grid operator SachsenNetze operates, maintains and modernises an electricity grid whose infrastructure totals around 24 648 km in length, and a gas grid totalling around 6 858 km. SachsenEnergie’s energy network also includes a 647 km district heating network and 2 420 km of water pipeline. As a service provider for telecommunications, SachsenEnergie’s fibre-optic network currently has 5 000 km of cable, and will grow to 15 000 km by 2027.