The European Commission (EC) and the European Investment Bank have announced a distribution of €3.66 billion (approximately $4 billion) from the EU’s Modernisation Fund to support energy initiatives across nine member states. This funding aims to modernize energy systems, lower greenhouse gas emissions, and improve energy efficiency across various sectors. This allocation marks the largest withdrawal from the Modernisation Fund to date, with total funding since January 2021 reaching €19.1 billion (around $22 billion).
The nine countries benefiting from this funding include: – **Croatia**: €170 million – **Czechia**: €1.05 billion – **Greece**: €113.6 million – **Hungary**: €181.3 million – **Latvia**: €40 million – **Lithuania**: €37 million – **Poland**: €1.33 billion – **Romania**: €712.3 million – **Slovenia**: €19.7 million
A total of 34 projects will receive financial support, focusing on several key areas such as renewable electricity generation, deployment of renewable energy sources, and modernization of energy networks. Specific initiatives include: – In **Croatia**, funding will support the production and use of heat from renewable sources and improve energy efficiency in heating and cooling systems. – In **Czechia**, investments are directed towards enhancing electricity storage capabilities from renewable sources. – **Greece** plans to replace urban diesel buses with electric buses, contributing to cleaner public transport. – **Hungary** targets improved energy efficiency in public buildings, helping reduce energy consumption. – **Latvia** is set to increase its electricity grid capacity to accommodate growing renewable energy sources. – In **Lithuania**, investments will focus on developing large-scale energy storage capacities. – **Poland** aims to implement a clean air program, which will enhance energy efficiency and replace outdated heating systems in single-family homes. – **Romania** will work on improving energy efficiency in installations covered by the EU Emissions Trading System. – **Slovenia** is modernizing its electricity transmission and distribution network to better integrate renewable energy.
Ambroise Fayolle, vice-president of the European Investment Bank, emphasized the importance of reducing reliance on fossil fuels to increase Europe’s energy autonomy. He noted that the Modernisation Fund exemplifies effective European cooperation aimed at fostering investments in green energy and sustainable transport, thereby assisting member states in achieving their decarbonization goals while strengthening economic resilience.
The deadlines for member states to submit investment proposals for the Modernisation Fund are set for August 12, 2025, for non-priority proposals, and September 9, 2025, for priority proposals.
