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HomeFinance2.4 billion euros from the Modernisation Fund to support CEE energy systems

2.4 billion euros from the Modernisation Fund to support CEE energy systems

The Modernisation Fund made available 2.4 billion euros 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. In particular, investments were confirmed in Romania (1391.6 million euros), Czechia (520 million euros), Poland (244.2 million euros), Lithuania (85 million euros), Hungary (74.3 million euros), Slovakia (49.5 million euros) and Croatia (40 million euros).

“The Modernisation Fund is European solidarity in action,” said the European Commission Executive Vice-President Frans Timmermans. “With revenues from the emissions trading system, it delivers concrete results on the ground, helping beneficiary countries reduce greenhouse gas emissions in key sectors and become climate neutral. Moreover, this major financial injection is available to launch projects that will help speed up our energy transition in response to Russia’s invasion of Ukraine.”

Overall, 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, buildings, as well as transport and the replacement of coal generation with lower carbon intensity fuel.

For example, in Czechia, it will help for 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 Lithuania, funds will be used for the renovation of public buildings. Romania will invest in the construction of 8 photovoltaic parks and two combined cycle gas turbine plants, which will replace lignite with renewables and gas for power generation. In Hungary, the fund will help strengthen grid security through energy storage instalments.

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