EWE AG, backed by a $495 million loan from the European Investment Bank (EIB), is set to invest over $770 million from 2025 to 2028 to upgrade critical grid infrastructure in northern Germany. A major part of this program targets the modernization of transformers and substations -- key elements that regulate voltage and ensure stable electricity distribution.

The initiative includes replacing and installing transformers in more than 1,100 substations and laying over 2,600 kilometers (1,615 miles) of new underground power lines. Transformers play a crucial role in adjusting voltage levels between high-voltage transmission lines and lower-voltage distribution networks, enabling efficient power delivery to consumers and industry.

By upgrading transformer technology, EWE aims to enhance grid flexibility and resilience, allowing it to better accommodate an additional 3 gigawatts (GW) of renewable energy by 2028. This supports Germany's goal of achieving 80% renewable electricity by 2030 and aligns with EU climate initiatives like REPowerEU.

Modern transformers equipped with advanced digital controls will improve fault detection, reduce power losses, and boost overall grid efficiency. These improvements are essential as renewable sources like wind and solar require a more dynamic and responsive grid to manage variable power flows.

EIB Vice-President Nicola Beer emphasized the importance of these upgrades, calling them the "hidden backbone" that will secure a cleaner and more reliable energy future for Europe.

This large-scale transformer modernization project not only supports climate targets but also strengthens energy security and paves the way for expanding clean energy and industrial growth in northern Germany.

Source: devdiscourse.com