The European Commission and European Investment Bank announce disbursement of € 3.66 billion to accelerate 34 energy projects across 9 Member States
The European Commission and the European Investment Bank (EIB) have announced a landmark disbursement of € 3.66 billion from the Modernization Fund to accelerate 34 energy projects across 9 European Union (E.U.) Member States.
The funds will help reduce Green House Gas (GHG) emissions and bolster energy efficiency across the bloc. They will also strengthen the E.U.’s industrial competitiveness by supporting modern, efficient and resilient energy infrastructure, fostering innovation and helping to reduce the E.U.’s imports of fossil fuels.
This latest disbursement marks the largest allocation from the Modernization Fund since its inception, raising the total funds distributed to € 19.1 billion since January 2021. The fund is financed through revenues from the E.U. Emissions Trading System (E.U. ETS).
The beneficiaries of today’s disbursement are Croatia (€170 million), Czechia (€1.05 billion), Greece (€113.6 million), Hungary (€181.3 million), Latvia (€40 million), Lithuania (€37 million), Poland (€1.33 billion), Romania (€712.3 million), and Slovenia (€19.7 million). This round includes the first investments in Greece, which became a Modernisation Fund beneficiary in January 2024.
The 34 projects target critical sectors such as renewable electricity generation, modernisation of energy infrastructure, and energy storage. Key initiatives include:
· Croatia: Upgrading heating and cooling systems with renewable energy.
· Czechia: Expanding electricity storage from renewable sources.
· Greece: Replacing urban diesel buses with electric buses.
· Hungary: Enhancing energy efficiency in public buildings.
· Latvia: Increasing capacity of the electricity grid.
· Lithuania: Investing in large-scale energy storage.
· Poland: Implementing a clean air programme to replace heat sources in single-family homes.
· Romania: Improving energy efficiency in EU ETS industrial installations.
· Slovenia: Expanding the electricity transmission network for renewable integration.
Speaking on the occasion, the Executive Vice-President for Clean, Just and Competitive Transition, European Commission – Teresa Ribera, said, “The energy transition will only succeed if people feel it improves their daily lives. With €19 billion invested in cleaner, smarter energy across lower-income Member States, the Modernization Fund is proof that Europe’s climate ambition goes hand in hand with social progress. These investments help reduce bills, improve public services, and create quality jobs making the transition real, fair and beneficial for all.”
The Vice-President of European Investment Bank – Ambroise Fayolle, said, “Increasing Europe’s energy autonomy requires reducing our reliance on fossil fuels and ensuring access to the cleanest, most affordable energy for people and businesses. The Modernization Fund is a model of European cooperation that facilitates investments in green energy and sustainable transport and supports eligible Member States in achieving their decarbonization objectives whilst boosting economic resilience and competitiveness.”
The Modernisation Fund is designed to assist 13 lower-income E.U. countries in their shift towards climate neutrality. Originally established for nations with GDP per capita below 75% of the E.U. average (2016–2018), the fund now includes Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Greece, Portugal, and Slovenia. It complements other E.U. funding instruments, such as the Cohesion Policy, the Recovery and Resilience Facility and the Just Transition Fund.
The deadlines for E.U. Member States to submit investment proposals for Modernisation Fund support are 12th August’25 for non-priority proposals and 9th September’25 for priority proposals. The priority investments focus on modernising energy systems, reducing GHG emissions in energy, industry and transport, and improving energy efficiency, listed in the EU ETS Directive. All other investments qualifying for the Modernisation Fund are considered as non-priority investments, subject to additional scrutiny.
