Hamburg invests €3 billion to electrify transport and upgrade its power grid

Hamburg is set to expand its green transport and energy infrastructure with major investments. The city’s public bus operator, Verkehrsbetriebe Hamburg-Holstein (VHH), is borrowing €125 million to buy 188 electric buses and upgrade its depot. Meanwhile, Hamburger Energienetze will pour nearly €3 billion into modernising the electricity grid by 2029. The European Investment Bank (EIB) is backing both projects with funding. VHH plans to use the €125 million loan to add 188 electric buses to its fleet and renovate its Schenefeld depot. Currently, around a third of the company’s 800 buses already run on electricity.

Hamburger Energienetze’s €2.9 billion investment aims to strengthen the city’s electricity distribution network. Demand for power is expected to at least double by 2040, driven by more heat pumps and the growing number of electric buses. The upgrades will help the grid handle this increased load.

Hamburg’s Finance Senator, Andreas Dressel (SPD), noted that the EIB funding is speeding up investments by public enterprises. The money will support both the core budget and key infrastructure projects across the city. The new electric buses and grid upgrades will help Hamburg meet rising energy needs. VHH’s expanded fleet will reduce emissions, while the modernised grid ensures reliable power for future demand. Both projects are set to move forward with financial backing from the European Investment Bank.