EU Modernisation Fund disburses €3bn for grid upgrades and renewables
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The European Union has disbursed €2.967 billion ($3.182 billion) via the Modernisation Fund to support 39 energy projects in 10 EU Member States.
The largest disbursement from the Modernisation Fund to date, the investments will support the modernisation of energy systems, reducing greenhouse gas emissions in the energy, industry and transport sectors, while improving energy efficiency.
Examples of proposals that have received funding from this latest disbursement include:
- Reinforcement of the electricity transmission grid to support renewables integration in Bulgaria;
- Development of storage capacities to balance energy systems in Lithuania;
- Upgrading of heavy-duty transport charging infrastructure in Poland;
- Deployment of photovoltaic and energy storage capacity for public water service providers in Croatia;
- Support to households for the acquisition and installation of new photovoltaic systems in Czechia;
- Improving energy efficiency and promoting renewable energy use in public sector buildings in Estonia;
- Modernisation and development of renewable energy-based district heating systems in Hungary;
- Use of renewable energy sources in multi-apartment buildings, public buildings, and energy communities in Latvia;
- Contract-for-difference support schemes for the production of electricity from renewable sources in Romania;
- Production of renewable hydrogen and highly efficient co-generation in Slovakia.
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Funded by revenues from the auctioning of emission allowances under the EU’s Emissions Trading System, the Modernisation Fund aims to support thirteen lower-income Member States in their transition to climate neutrality.
The Modernisation Fund supports investments in the modernisation of energy networks, including district heating, pipelines and grids, the generation and use of energy from renewable sources, energy efficiency, energy storage and just transition in carbon-dependent regions.
The beneficiary Member States are Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia, as well as Greece, Portugal and Slovenia; which became eligible for Modernisation Fund support as of January 2024, under the revised EU Emissions Trading System.
Specifically, the Member States benefitting from this first disbursement of 2024 include Bulgaria (€65.2 million; $69.9 million), Croatia (€52 million; 55.8 million), Czechia (€835.2 million; $895.8 million), Estonia (€24.1 million; $25.9 million), Hungary (€76.8 million; $82.4 million), Latvia (€26.8 million; $28.8 million), Lithuania (€59 million; $63.3 million), Poland (€697.5 million; $748.1 million), Romania (€1.095 billion; $1.175 billion) and Slovakia (€35 million; $37.5 million).
Commenting in a release was Maroš Šefčovič, executive vice-president for European Green Deal, Interinstitutional Relations and Foresight: “The Modernisation Fund is a crucial instrument to foster decarbonisation, while showing solidarity in the EU.
“The €12.65 billion ($13.57 billion) that we have disbursed to Member States since 2021 prove our commitment to achieving our climate neutrality goal in a socially fair manner. By supporting this group of Member States in modernising their energy systems, we continue to move forward on our decarbonisation path via investment into clean technologies that also make us competitive in the long run.”
The next deadlines for Member States to submit investment proposals for potential support by the Modernisation Fund are 13 August 2024 for non-priority proposals, and 10 September 2024 for priority proposals.
