European Commission and EIB Disburse €1.8 Billion from Modernisation Fund to Support 45 Clean Energy Projects Across 12 EU Member States

The European Commission, in cooperation with the European Investment Bank (EIB), has announced the disbursement of €1.8 billion from the EU’s Modernisation Fund to support 45 clean energy investments across 12 EU Member States. The latest allocation includes the first-ever funding for Portugal, which became a beneficiary of the fund in 2024.

The Modernisation Fund is financed through revenues generated by the EU Emissions Trading System (EU ETS) and is designed to support the modernisation of energy systems in lower-income EU countries. With this latest disbursement, total funding allocated under the Modernisation Fund has reached €20.7 billion, supporting 294 investments since the fund’s launch in 2021.

The investments target high-impact projects aimed at reducing greenhouse gas (GHG) emissions across the energy, industrial, and transport sectors, while also improving energy efficiency. The fund supports Member States in meeting their climate and energy targets, implementing National Energy and Climate Plans (NECPs), enhancing industrial competitiveness, and reducing reliance on fossil fuel imports.

This marks the second disbursement under the Modernisation Fund in 2025. It follows an earlier allocation of €3.66 billion in July, which supported 34 investments. Together, the two rounds bring total disbursements in 2025 to €5.46 billion, covering 79 projects across beneficiary Member States.

In 2025 alone, funding has been distributed to Bulgaria (€50 million), Croatia (€224 million), Czechia (€1.78 billion), Estonia (€111 million), Hungary (€279 million), Greece (€163 million), Latvia (€40 million), Lithuania (€42 million), Poland (€1.44 billion), Portugal (€15 million), Romania (€1.24 billion), Slovakia (€26 million), and Slovenia (€47 million).

All 79 projects supported this year focus on renewable electricity generation, the deployment of renewable energy sources, the modernisation of energy infrastructure, and improvements in energy efficiency. Key initiatives include renewable-based heating and cooling systems connected to district heating networks in Bulgaria; energy efficiency improvements and renewable heat deployment in Croatia; investments in electricity storage capacity in Czechia and Lithuania; upgrades to electricity networks in Greece and Slovenia; and increased grid capacity in Latvia.

Additional projects include energy efficiency upgrades in public sector buildings in Estonia, improvements to municipal thermal baths in Hungary, a clean air programme supporting energy efficiency and heating system replacements in Polish households, and renewable-based heating and cooling solutions leveraging geothermal resources in Portugal. Romania’s funding focuses on improving energy efficiency in EU ETS installations, while Slovakia’s allocation targets emission reductions and efficiency improvements in industrial facilities and related buildings.

The European Commission noted that the Modernisation Fund continues to play a key role in accelerating the EU’s clean energy transition by supporting large-scale investments that strengthen energy security, reduce emissions, and modernise critical energy infrastructure across Member States.