The European Union’s Modernisation Fund has announced a historic allocation of €3.66 billion to support clean energy initiatives across nine member states. This is the largest funding disbursement from the fund, which is financed by revenues from carbon pricing. The projects primarily focus on renewable energy generation, grid improvements, energy storage solutions, and enhancing energy efficiency.
Poland is the largest recipient of this funding, securing €1.33 billion for various clean energy projects. The Czech Republic follows closely with €1.05 billion, while Romania will receive €712.3 million. Additional allocations include Hungary (€181.3 million), Croatia (€170 million), and Greece (€113.6 million). Latvia, Lithuania, and Slovenia will receive €40 million, €37 million, and €19.7 million, respectively.
In Croatia, €80 million will be directed towards producing renewable heat and improving energy efficiency in heating and cooling systems. The remainder will support investments in zero-emission transportation initiatives. Slovenia will focus on modernizing its electricity transmission and distribution networks to better integrate renewable sources.
Greece, which joined the Modernisation Fund in January 2024, plans to replace diesel buses with electric ones, upgrade energy efficiency in municipal swimming pools, and transition its greenhouse heating and cooling systems to renewable sources.
Romania’s funding aims to enhance energy efficiency in facilities participating in the EU Emissions Trading System (EU ETS). It will also support the contract-for-difference scheme for onshore wind and solar projects, as well as boost investments in solar, wind, and hydropower capacities.
The Czech Republic and Lithuania will utilize their funds for energy storage projects. In Poland, a clean air program will focus on improving energy efficiency and replacing heating systems in single-family homes.
The European Commission highlights that these investments will lower greenhouse gas emissions, improve energy efficiency, and assist member states in meeting their climate and energy goals. Furthermore, these initiatives are expected to lower energy costs, enhance public services, create jobs, and facilitate a fair transition to clean energy.
Since its inception in January 2021, the Modernisation Fund has distributed a total of €19.1 billion, supporting various clean energy projects across the EU. This funding is critical for driving the transition to a sustainable energy future and fulfilling climate commitments.
