EU’s Modernisation Fund Supports 39 Energy Projects with €2.967 Billion Investment

The European Union has disbursed nearly €3 billion from the Modernisation Fund to support 39 energy projects across 10 EU Member States. This significant investment is part of the EU’s ongoing efforts to modernize energy systems, enhance energy efficiency, and reduce greenhouse gas emissions in the energy, industry, and transport sectors. The disbursement, totaling €2.967 billion, marks the largest allocation from the Modernisation Fund to date, bringing the total to €12.65 billion since its inception in 2021.

European Commissioner for Energy Kadri Simson emphasized the importance of this funding, stating, “This investment is crucial for helping Member States meet their climate and energy targets and contributes significantly to the EU’s goal of climate neutrality by 2050.”

The first disbursement of 2024 benefits a diverse group of countries:

• Bulgaria receives €65.2 million to reinforce its electricity transmission grid, supporting the integration of renewable energy sources.
• Croatia is allocated €52 million for deploying photovoltaic systems and energy storage capacity for public water service providers.
• Czechia secures €835.2 million to support households in acquiring new photovoltaic systems, promoting residential renewable energy adoption.
• Estonia gains €24.1 million aimed at improving energy efficiency in public sector buildings, reducing overall energy consumption.
• Hungary is granted €76.8 million to modernize its district heating systems with renewable energy sources.
• Latvia receives €26.8 million for utilizing renewable energy in public and multi-apartment buildings.
• Lithuania is awarded €59 million to develop storage capacities that balance the energy system, enhancing grid stability.
• Poland secures €697.5 million to upgrade its heavy-duty transport charging infrastructure, supporting the transition to electric vehicles.
• Romania receives €1.095 billion for contract-for-difference support schemes that promote renewable electricity production.
• Slovakia is granted €35 million to produce renewable hydrogen and develop highly efficient co-generation projects.

The Modernisation Fund continues to play a pivotal role in the EU’s climate strategy, providing essential financial support to Member States to advance their energy transition. With upcoming deadlines for investment proposals set for August 13, 2024, for non-priority proposals, and September 10, 2024, for priority proposals, the fund remains a critical tool in accelerating the EU’s journey towards climate neutrality.