The European Union has allocated €2.967 billion through the Modernisation Fund to support 39 energy projects across 10 Member States, marking the largest disbursement since its inception. These investments aim to modernise energy systems, slash greenhouse gas emissions in energy, industry, and transport sectors, and enhance energy efficiency. This brings total disbursements via the Fund to €12.65 billion since January 2021, crucial in helping Member States meet climate and energy targets, aligning with the EU’s ambition to achieve climate neutrality by 2050.
The funds disbursed in 2024 will benefit Bulgaria (€65.2 million), Croatia (€52 million), Czechia (€835.2 million), Estonia (€24.1 million), Hungary (€76.8 million), Latvia (€26.8 million), Lithuania (€59 million), Poland (€697.5 million), Romania (€1.095 billion), and Slovakia (€35 million). Projects supported include initiatives in renewable electricity generation, deployment of renewable energy sources, modernisation of energy networks, and enhancing energy efficiency.
Examples of funded projects:
- Bulgaria: Reinforcement of electricity transmission grids for renewables integration.
- Croatia: Deployment of photovoltaic and energy storage for public water service providers.
- Czechia: Subsidies for households installing new photovoltaic systems.
- Estonia: Energy efficiency upgrades in public sector buildings.
- Hungary: Modernisation of renewable energy-based district heating.
- Latvia: Renewable energy use in multi-apartment buildings and public structures.
- Lithuania: Development of energy storage for grid balancing.
- Poland: Expansion of heavy-duty transport charging infrastructure.
- Romania: Support schemes for renewable electricity production.
- Slovakia: Production of renewable hydrogen and efficient co-generation.
The next deadlines for Member States to propose investments are 13 August 2024 for non-priority projects and 10 September 2024 for priority initiatives.
Background:
Funded by revenues from emission allowances under the EU’s Emissions Trading System, the Modernisation Fund supports 13 lower-income Member States in their climate transition. It targets Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Greece, Portugal, and Slovenia (from January 2024). The Fund complements Cohesion policy and the Just Transition Fund, bolstering investments in renewable energy, energy efficiency, storage, and network modernisation. Operating under beneficiary countries with oversight from the European Commission and the European Investment Bank, it aligns with the REPowerEU Plan and Fit For 55 package.
