The European Commission and the European Investment Bank have allocated €3.66 billion from the EU’s Modernisation Fund to finance 34 energy-related initiatives across nine EU Member States. These investments target the modernization of energy systems, aiming to reduce greenhouse gas emissions in the energy, industry, and transport sectors, while also boosting energy efficiency.
According to the Commission, these projects are designed to enhance the EU’s industrial competitiveness by developing efficient and resilient energy infrastructure, promoting innovation, and decreasing reliance on fossil fuel imports. Climate Commissioner Wopke Hoekstra stated, “Our priority is to support the modernization of energy systems in EU Member States that require it most, utilizing ETS revenues. This investment contributes to building a stronger, more competitive Europe. The Modernisation Fund is pivotal in this effort. With this latest €3.66 billion investment, these initiatives will foster solidarity and advance our collective climate and energy objectives.”
The funding comes from revenues generated by the EU Emissions Trading System (EU ETS). The disbursements are as follows: Croatia received €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, and Slovenia €19.7 million. This funding round marks the first investments in Greece since it became a Modernisation Fund beneficiary in January 2024.
The supported projects include various initiatives aimed at advancing renewable energy generation and improving energy efficiency. Notable examples involve: – In Croatia, funding will support the production and use of heat from renewable sources and enhance energy efficiency in heating and cooling systems. – Czechia will invest in expanding electricity storage capacity from renewable sources. – Greece plans to replace urban diesel buses with electric buses. – Hungary will focus on improving energy efficiency in public buildings. – Latvia will increase its electricity grid capacity. – Lithuania is set to invest in large-scale energy storage solutions. – Poland will develop a clean air program to enhance energy efficiency in single-family homes and replace heating sources. – Romania aims to boost energy efficiency in installations covered by the EU ETS. – Slovenia will modernize its electricity transmission and distribution network to better integrate renewable energy.
The Modernisation Fund is specifically designed to assist 13 lower-income EU countries, with a GDP per capita below 75% of the EU average from 2016 to 2018, in their transition towards climate neutrality. This funding initiative reflects the EU’s commitment to supporting sustainable energy developments across its member states.
