The European Investment Bank (EIB) and BNP Paribas have agreed to provide €700 million in guarantees aimed at helping European manufacturers expand production of electricity grid equipment.
The guarantee program is backed by €350 million in counter-guarantees from each institution and is supported by the European Union’s InvestEU program.
The initiative forms part of the EIB’s broader €1.5 billion Pan-EU Power Grid package, designed to develop, modernize and strengthen electricity networks across Europe.
The €700 million guarantee portfolio is expected to support up to €2.8 billion in investment across the wider European economy.
The arrangement will also increase BNP Paribas’ ability to finance manufacturers producing components needed for electricity grids as demand grows alongside Europe’s energy transition.
The financing comes as European countries invest in expanding and upgrading their power networks to support changing energy needs.
The agreement follows a separate €1 billion wind energy guarantee portfolio signed by the EIB and BNP Paribas in February 2025.
The EIB said its group invested €33 billion in energy projects globally in 2025, including €11.6 billion for electricity grids and energy storage.
The institution has also previously made €6.5 billion available to support wind energy projects.
The new guarantee program is intended to help grid-equipment manufacturers access financing as Europe works to expand its electricity infrastructure.
Through the guarantees, BNP Paribas can provide greater financing capacity to companies involved in producing key grid components, while the EIB shares part of the underlying risk.
The initiative highlights the growing financing needs surrounding Europe’s energy transition, particularly as investment shifts toward stronger electricity networks and storage infrastructure.
