Introduction
The European Commission and the European Investment Bank (EIB) have announced the disbursement of €3.66 billion from the EU Modernisation Fund. This investment supports 34 energy projects across nine EU Member States, advancing the EU’s path toward a sustainable and efficient energy future.
Purpose of the Investment
The initiative aims to modernize energy systems across the EU, reduce greenhouse gas emissions in energy, industry, and transport sectors, and enhance energy efficiency. These projects will help beneficiary Member States meet their climate and energy targets, while also boosting industrial competitiveness and reducing the EU’s dependence on imported fossil fuels.
Beneficiary Countries and Funding Allocation
This marks the largest disbursement to date from the EU Modernisation Fund, bringing total disbursements to €19.1 billion since January 2021. The funding breakdown is as follows:
- Poland: €1.33 billion
- Czechia: €1.05 billion
- Romania: €712.3 million
- Hungary: €181.3 million
- Croatia: €170 million
- Greece: €113.6 million
- Latvia: €40 million
- Lithuania: €37 million
- Slovenia: €19.7 million
Notably, this round includes Greece’s first investments since becoming eligible in January 2024.
Focus Areas of the Projects
The supported projects fall into four main categories:
- Renewable energy production and deployment
- Energy efficiency improvements
- Energy storage
- Grid modernization and development
Project Examples
- Czechia: Investments in renewable energy storage capacity
- Greece: Replacement of diesel buses with electric urban buses
- Hungary: Improving energy efficiency in public buildings
- Poland: Launch of the “Clean Air” program to upgrade heating systems in single-family homes
- Slovenia: Modernizing the electricity transmission and distribution network
About the EU Modernisation Fund
Funded through revenues from the EU Emissions Trading System (EU ETS), the Modernisation Fund supports 13 lower-income EU Member States in their transition to climate neutrality. Eligible countries include Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia, with Greece, Portugal, and Slovenia joining in 2024 under the revised EU ETS directive.
The Fund supports:
- Renewable energy generation and usage
- Energy efficiency
- Energy storage
- Modernization of energy grids, including district heating and pipeline networks
- A just transition in carbon-dependent regions
It complements other EU funding instruments such as the Cohesion Policy, the Recovery and Resilience Facility, and the Just Transition Fund, aligning closely with REPowerEU and the Fit for 55 package.
Upcoming Funding Deadlines
EU Member States interested in submitting investment proposals must meet the following deadlines:
- 12 August 2025: Non-priority proposals
- 9 September 2025: Priority proposals
Priority investments focus on energy system modernization, GHG emissions reduction, and energy efficiency. Non-priority investments undergo additional scrutiny.
Conclusion
The EU Modernisation Fund plays a pivotal role in supporting the green transformation of Europe’s energy landscape, especially in lower-income Member States. With the latest €3.66 billion disbursement, the EU reinforces its commitment to a cleaner, more resilient, and energy-independent future, paving the way toward its 2030 and 2050 climate goals.
AI – generated image.
Sources: https://ec.europa.eu/commission/presscorner/detail/it/ip_25_1714
