Modernisation Fund invests €2.4 billion to accelerate the green transition in 7 beneficiary countries

Today, the Modernisation Fund made available €2.4 billion to seven beneficiary countries to help modernise their energy systems, reduce greenhouse gas emissions in energy, industry and transport, and support them in meeting their 2030 climate and energy targets. Investments were confirmed in Romania (€1391.6 million), Czechia (€520 million), Poland (€244.2 million), Lithuania (€85 million), Hungary (€74.3 million), Slovakia (€49.5 million), and Croatia (€40 million). This concludes the third investment cycle of the Modernisation Fund and represents a sharp increase in spending compared to previous investment cycles.

The Modernisation Fund is supporting 45 investment proposals in the areas of electricity generation from renewable sources, modernisation of energy networks and energy efficiency in the energy sector, in industry, in buildings, as well as in transport, and the replacement of coal generation with lower carbon intensity fuel. Examples of the investments the Fund is supporting are:

• the modernisation of public lighting systems within municipalities, conversion of coal to biomass and gas in district heating and ETS installations, and increase of energy efficiency in Czechia;
• the production of electricity from renewable energy sources in Croatia;
• the renovation of public buildings, increasing energy efficiency in Lithuania;
• the construction of 8 photovoltaic parks and two combined cycle gas turbine plants, which will replace lignite with renewables and gas for power generation and modernisation of electricity networks in Romania;
• the improvement of energy efficiency in industry in Poland;
• energy storage instalments for grid security in Hungary;
• the rehabilitation and extension of district heating and cooling networks in Slovakia.

The deadline for beneficiary Member States to submit investment proposals for potential support by the Modernisation Fund for the next disbursement cycle is 16 August 2022 for non-priority proposals (i.e. investments that fall outside the Fund’s priority areas), and 13 September 2022 for priority proposals (i.e. investments that fall under the priority areas).

Source: European Commission