The European Commission (EC) and the European Investment Bank have announced a funding allocation of €3.66 billion (approximately $4 billion) from the Modernisation Fund to support energy-related projects in nine EU member states. This significant investment aims to modernize energy systems, lower greenhouse gas emissions, and improve energy efficiency across various sectors.
The funding, sourced from the EU Emissions Trading System (EU ETS), marks the largest distribution from the Modernisation Fund to date. The nine beneficiaries 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
These funds will support 34 specific projects focused on renewable electricity generation, the deployment of renewable energy sources, and the modernization of energy networks. Key initiatives include: – In Croatia, funding will enhance the production and use of heat from renewable sources and improve efficiencies in heating and cooling systems. – Czechia plans to invest in electricity storage systems powered by renewable energy. – Greece will replace urban diesel buses with electric alternatives to reduce emissions. – Hungary aims to boost energy efficiency in public buildings. – Latvia is increasing its electricity grid capacity to accommodate growing renewable sources. – Lithuania will invest in large-scale energy storage systems. – Poland is developing a clean air program to improve energy efficiency and replace heating sources in single-family homes. – Romania will focus on enhancing energy efficiency in installations covered by the EU ETS. – Slovenia is modernizing its electricity transmission and distribution networks to integrate more renewable energy.
Ambroise Fayolle, Vice President of the European Investment Bank, emphasized the importance of this funding in reducing reliance on fossil fuels and ensuring access to clean, affordable energy. He noted that the Modernisation Fund exemplifies European cooperation, enabling green energy investments that support member states in meeting their decarbonization goals while enhancing economic resilience and competitiveness.
Member states have until August 12, 2025, to submit non-priority investment proposals and until September 9, 2025, for priority proposals. This initiative represents a clear commitment from the EU to drive the transition towards renewable energy and sustainable transport solutions.
