The European Commission and the European Investment Bank announced that €3.66 billion have been disbursed from the EU’s Modernisation Fund to support 34 energy related projects in nine EU Member States.
The investments are aimed modernising energy systems in the EU, reducing greenhouse gas (GHG) emissions in the energy, industry and transport sectors, and improving energy efficiency.
The Commission says they will strengthen the EU’s industrial competitiveness by supporting modern, efficient and resilient energy infrastructure, fostering innovation and helping to reduce the EU’s imports of fossil fuels.
“Supporting the revamp of energy systems in the EU Member States most in need by using ETS revenues is our priority,” said Climate Commissioner Wopke Hoekstra: “It helps build a stronger, more competitive Europe. The Modernisation Fund is a game-changer in this regard. With another €3.66 billion of investment today, these projects will strengthen solidarity and push our shared climate and energy goals forward.”
The projects will be funded by revenues from the EU Emissions Trading System (EU ETS), and beneficiaries are 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) and Slovenia (€19.7 million). This round includes first investments in Greece, which became a Modernisation Fund beneficiary in January 2024.
The 34 supported projects focus on renewable electricity generation, use and deployment of renewable energy sources, modernisation of energy networks and energy efficiency.
Examples include:
- support for the production and utilisation of heat from renewable energy sources and energy efficiency in heating and cooling systems in Croatia;
- Investments in electricity storage capacity from renewable sources in Czechia;
- replacement of urban diesel buses with new urban electric buses in Greece;
- improving energy efficiency in public buildings in Hungary;
- increasing the electricity grid capacity in Latvia;
- Investments in large-scale energy storage capacities in Lithuania;
- development of clear air programme supporting energy efficiency improvements and heat source replacements in single-family houses in Poland;
- increasing energy efficiency in EU ETS installations in Romania;
- modernisation and development of the electricity transmission and distribution network to facilitate integration of renewables in Slovenia.
The Modernisation Fund, funded by revenues from the auctioning of emission allowances under the EU ETS, aims to support 13 lower-income EU countries (with a gross domestic product per capita below 75 % of the Union average in the years 2016 to 2018) in their transition to climate neutrality.
Adopted disbursement decisions
Confirmations of priority investments
Recommendations of the Modernisation Fund Investment Committee
