The European Commission and the European Investment Bank (EIB) have put into circulation this Thursday 2.5 billion euros from the Modernisation Fund to support 51 projects linked to the energy sector in eleven Member States. These investments are aimed at boosting renewable energies, upgrading electricity grids, increasing energy efficiency, and cutting greenhouse gas emissions.
These resources, from the proceeds of the European emissions trading system (ETS), bring the total volume mobilised by this mechanism since January 2021 to 23.2 billion euros. Romania will be the main recipient of this new allocation, with nearly 637 million euros, followed by Hungary, with 552 million, and the Czech Republic, with 517 million, while the rest of the amount will be distributed among Greece, Poland, Lithuania, Croatia, Portugal, Estonia, Latvia, and Slovenia.
The approved actions include the launch of new renewable generation facilities and energy storage systems, the upgrading of electricity infrastructure, and measures to optimise consumption in the energy, industry, and transport sectors.
Among the supported projects are the decarbonisation of urban heating networks in the Czech Republic, the replacement of diesel buses and trolleybuses with electric vehicles in public transport in Estonia and Latvia, the digitalisation and expansion of the electricity grid in Hungary, and the deployment of geothermal systems for urban heating in Croatia.
The Modernisation Fund will also support initiatives aimed at improving the energy efficiency of industrial plants in Greece and Lithuania, the rehabilitation of housing and the modernisation of heating systems in Poland, the renovation of public buildings in Portugal, the development of battery-based electricity storage systems in Romania, and the strengthening of renewable generation capacity along with the upgrading of the electricity grid in Slovenia.
This instrument is funded by the revenues obtained from the auctioning of emission allowances from the European carbon market and is designed to support the energy transition in the EU Member States with lower incomes. Currently, Bulgaria, Croatia, the Czech Republic, Estonia, Greece, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovenia, and Slovakia can access its resources.
According to Brussels, the Modernisation Fund acts as a complement to other EU programs, including cohesion policy, the Recovery and Resilience Facility, and the Just Transition Fund, with the aim of accelerating the modernisation of energy systems, strengthening the deployment of renewables, and reducing dependence on fossil fuels.
Member States will be able to submit new funding applications to this fund until August 11 for non-priority investments and until September 8 for priority projects, which account for more than 90% of the portfolio and are aimed at modernising energy systems and reducing emissions.