Source: European Union 2 Published on: 2026-05-19
• EIB simultaneously finances modern power grids and electric buses
⢠Long-term EIB funds enable coordinated investments in networks and mobility in the metropolitan region
Hamburg. The European Investment Bank (EIB) is providing strategic financing to two companies of the Hamburg city economy for the expansion of Hamburg’s infrastructure: Hamburger Energienetze GmbH (HNE) will receive funds of up to one billion euros for the comprehensive modernization of the city’s electricity distribution network, and vhh.mobility (Verkehrsbetriebe Hamburg-Holstein GmbH) will receive 125 million euros for the procurement of 188 new electric buses and the expansion of operational infrastructure. Both companies are subsidiaries of HGV (Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH), the corporate holding of the Free and Hanseatic City of Hamburg, under whose leadership the financing was carried out. Given the investment needs required by Hamburg’s energy and mobility transition, the favorable EIB conditions ensure that public funds can be used especially effectively and that Hamburg can position itself as a model city for sustainable infrastructure in Europe.
The loan agreements were officially signed today by the municipal companies and the EIB in the presence of EIB Vice-President Nicola Beer, Finance Senator Andreas Dressel, State Councilor Martin Bill from the Transport Authority, as well as the management of HGV, HNE, and vhh.mobility.
Hamburg Energy Networks: One Billion Euros for the Power Grid of the Energy Transition
Hamburg Energy Networks GmbH is investing around 2.9 billion euros by 2029 in the expansion and modernization of the city’s electricity distribution network. The EIB is supporting this program with a framework financing agreement of up to one billion euros, which corresponds to around 28 percent of the total financing. The financing will be disbursed in several tranches. The first funds were already made available in October 2025.
The investment program includes:
• Approximately 1,500 kilometers for new and refurbished lines in low, medium, and high voltage
• The renovation and new construction of substations as well as the expansion of digital control technology
• 120 new switch fields
• Digitization of the grid infrastructure for the integration of renewable energies
The expanding power grid is the material foundation of Hamburg’s energy and mobility transition. Forecasts show that by 2040, at least a doubling of the peak network load is to be expected – driven by the ramp-up of heat pumps, more electromobility, and emission-free buses.
The project is in line with the objectives of REPowerEU to strengthen supply security and rapidly expand the share of renewable energies, and is at the same time embedded in the European energy strategy.
vhh.mobility: 125 million euros for 188 new electric buses and the expansion of depots for electromobility
vhh.mobility – the third-largest municipal bus operator in Germany – is investing up to 337 million euros in the expansion of electromobility over the coming years. The EIB is participating in the financing of this project volume with a framework financing agreement amounting to 125 million euros, which corresponds to about 37% of the total volume.
The project includes:
• The procurement of 188 modern electric buses: 120 standard buses, 52 articulated buses, 16 minibuses
• The conversion and expansion of the Schenefeld depot including charging infrastructure
Already today, around one third of the approximately 800 vehicles of vhh.mobility operate electrically. Since 2020, the company has been procuring only emission-free buses for Hamburg. With the new vehicles, this proportion will be significantly increased. The investment contributes to the reduction of CO₂ emissions, air pollutants, and noise, as well as to the implementation of European and national climate targets in the transport sector.
The e-bus program of vhh.mobility and the HNE’s power grid program are closely linked: the ramp-up of the electric bus fleet is only possible if the power grid is also designed for the growing charging infrastructure. Both investments are coordinated and strategically aligned through the HGV – an example of the importance of coordinated investments in grid and mobility.
Nicola Beer, Vice President of the European Investment Bank: “Hamburg shows how Europe’s cities can comprehensively restructure their infrastructure: with strong power grids and an electrified local public transport. It is precisely this integrated approach that the EIB supports – with targeted financing for grids and clean bus fleets.”
Andreas Dressel, Senator for Finance: “The funds from the European Investment Bank further strengthen the already strong investment surge of our public companies and in the core budget. We have planned to more than triple investments in the core budget from 2018 to 2027 to over 1,500 euros per capita; our public companies also invest billions annually, particularly in the energy and mobility transitions. Infrastructure that is technologically up to date ensures economic competitiveness and is a crucial location advantage. With smart financing like this from the EIB, own funds can be leveraged even better. The fact that EU funds go to Hamburg via the EIB in this magnitude underscores Hamburg’s exemplary role in Europe and simultaneously shows the citizens of our city how positively Europe impacts us as well. Our municipal holding company HGV, as an investment platform, helps us to use the funds as efficiently as they are purposefully.
Katharina Fegebank, Second Mayor and Senator for Environment, Climate, Energy and Agriculture: “A strong energy infrastructure and the electrification of transport are central prerequisites for Hamburg to remain affordable, competitive and future-proof. This can only be achieved with strong partners like the European Investment Bank. It supports the Hamburg energy networks in strategically further developing the electricity distribution grid. And thanks to the EIB, vhh.mobility can further accelerate the transition to emission-free buses. This way, Hamburg can lead the way – for a contemporary energy supply and modern, affordable mobility that protects the climate and the environment without emissions.”
Martin Bill, State Councillor for Transport and Mobility Transition: “Hamburg already holds a nationwide pioneering role in the electrification of its bus fleet; 38% of the buses run electrically. This funding supports us in consistently continuing this path. With funds for up to 188 new electric buses as well as the necessary expansion of the charging infrastructure, we are taking another decisive step towards cleaner local transport and the mobility transition. This means less emissions, less noise, and more quality of life for all Hamburg residents.”
Oliver Jensen, HGV Management: “The partnership with the European Investment Bank is a strong signal for us: It confirms that Hamburg is on the right track in building sustainable infrastructure, as the EIB carefully examines how projects contribute to the energy transition before granting loans.
HGV, HNE, and vhh.mobility have done their homework and, in intensive, constructive coordination with the EIB, have been able to provide all necessary evidence, so that today we can celebrate the successful completion of the financing with the signing. This is exactly the strength of a holding structure like HGV: We think infrastructure together – power grid and public transport, energy and mobility transition – and can ensure a long-term, coordinated financial planning beyond individual subsidiaries.
Gabriele Eggers, Managing Director of HNE: “The modernization of Hamburg’s power infrastructure is the prerequisite for the success of the energy transition, for emission-free heat supply and mobility. Our grid will also continue to ensure grid stability and supply security in the future. To keep it that way, we must invest. And to be able to do that, we have a strong and fair partner at our side with the European Investment Bank!”
Britta Oehlrich, Managing Director of vhh.mobility: “This loan gives us the opportunity to make Hamburg a bit more livable for all 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, people, and mobility. We want to show that sustainable local transport is not just a goal on paper, but a lived reality that noticeably improves the everyday lives of our passengers.”
Strategic Context: Coordinated Infrastructure for Hamburg’s Energy Transition
Both projects are part of an overarching strategy of HGV as a platform for public infrastructure investments in Hamburg. HGV consolidates municipal holdings in the areas of energy, mobility, water and logistics–and thus enables coordinated investment planning across company boundaries.
The synergies between power grid expansion and the e-bus fleet are exemplary: the electrification of public transport increases the demands on the power grid – at the same time, a powerful, digital grid is a prerequisite for the reliable operation of growing charging infrastructure. Through the HGV, these investments are strategically coordinated.
The financing by the EIB underscores the European dimension of both projects: As the EU Climate Bank, the EIB specifically supports infrastructure projects that contribute to achieving the European climate targets and to implementing the European Green Deal.
Background Information
About the HGV – Hamburg Society for Asset and Investment Management Ltd.
The HGV (Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH) is the corporate holding company of the Free and Hanseatic City of Hamburg and consolidates a large part of the public companies as well as selected private-sector participations of the city. The main focus of its portfolio of participations lies in the areas of public local transport, traffic and logistics, energy and supply infrastructure, as well as real estate and urban development.
On behalf of the Senate, the HGV manages its holdings in close coordination with the finance and specialist authorities, creates synergies through cross-company and cross-sector coordination, and thus actively shapes the sustainable development of Hamburg. The core tasks of the HGV include the economic management and further development of the investment portfolio, ensuring the liquidity of the holdings, as well as consolidating profits and losses within the framework of the tax cross-referencing.
About Hamburger Energienetze GmbH (HNE)
Hamburg Energy Networks (HNE) is the municipal operator for the electricity, gas, and hydrogen networks in the Hanseatic City. The core tasks of HNE include the expansion and modernization of the electricity grid, secure gas supply, and the development of a hydrogen network. This allows more heat pumps and electric vehicle charging stations to operate while maintaining a consistently high supply quality. Through the digitalization of the electricity infrastructure, increasing feed-ins of renewable energies can be managed and integrated. From 2027, Hamburg’s industry can decarbonize large parts of production via the hydrogen industry network. HNE is also the basic metering point operator in the electricity and gas sectors. Under the company’s umbrella, 2,300 specialists work to ensure that Hamburg’s households and industry are supplied with energy safely and reliably in the future.
www.hamburger-energienetze.de
vhh.mobility (Verkehrsbetriebe Hamburg-Holstein) is the third largest municipal bus operator in Germany, with around 3,000 employees and approximately 800 buses at 18 locations. The company, headquartered in Hamburg, transports about 105.5 million passengers annually. vhh.mobility is a partner in the Hamburg Transport Association (hvv) and operates on 181 lines in the Hamburg metropolitan region.
vhh.mobility is a driver of the important future topics of electromobility and digital mobility. In 2014, vhh.mobility put Hamburg’s first e-bus into operation; since 2020, the company has been procuring only electric buses for Hamburg. vhh.mobility is a nationwide pioneer in digitally demand-controlled on-demand transport and successfully launched Germany’s first on-demand public transport service with hvv hop in 2018.
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TheEuropean Investment Bank(EIB) is the European Union’s institution for long-term financing. Its shareholders are the member states. Based oneight core prioritieswe finance investments that lead to thestrategic goalscontribute to the EU. In this way, we promote the areas of climate and environment, digitalization and technological innovation, security and defense, cohesion, agriculture and bioeconomy, social infrastructure, capital markets union, and a stronger Europe in a more stable and peaceful world.
The EIB Group, which includes not only the EIB but also theEuropean Investment Fund(EIF) signed nearly 89 billion euros in new financing for more than 900 in 2024effective projectsand thereby made Europe even more competitive and secure.
All projects financed by the EIB Group comply with the Paris Climate Agreement – just like in ourClimate Bank Roadmapcommitted. Almost 60 percent of the EIB Group’s annual financing goes to projects that directly contribute to climate protection, climate adaptation, and a healthier environment.
The group advocates for stronger integration of the markets and mobilizes additional investments through its commitment. In 2024, it triggered record investments of more than 100 billion euros in Europe’s energy security and mobilized 110 billion euros in growth capital for start-ups, scale-ups, and European pioneers.
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Over one billion euros for Hamburg’s future: European Investment Bank finances Hamburg’s energy and transport transition
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The project consists of (i) the reconstruction and expansion of the existing Schenefeld depot including installation of charging equipment for electric vehicles, and (ii) the acquisition of 120 standard electric buses (12m length), 52 articulated electric buses (18m length) and 16 small electric buses (6.8m length).
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