Following an assessment by the European Investment Bank under the Modernisation Fund, the European Commission announced on Thursday that it has paid €2.7 billion to support 39 investment projects in eight member states, according to a press release from the EU executive.
The 39 projects include the installation of at least 1,500 MWh of battery storage systems in existing renewable energy plants in Romania.
These projects will help lower-income EU countries strengthen their clean industrial sector and meet their 2030 climate and energy targets by reducing greenhouse gas emissions and improving energy efficiency. Financed by revenues from the EU Emissions Trading System (EU ETS), the Modernisation Fund has now provided €15.45 billion in investments to support projects in the clean energy transition since its launch in 2021, according to Agerpres.
The new support announced today complements the investments of almost €2.97 billion announced in June for another 38 projects, bringing the total Modernisation Fund payments in 2024 to €5.67 billion, covering 77 projects in 11 countries. This year alone, payments have been made to Bulgaria (€65 million), Croatia (€52 million), the Czech Republic (€1.283 billion), Estonia (€84 million), Hungary (€202 million), Latvia (€27 million), Lithuania (€185 million), Poland (€1.733 billion), Romania (€1.956 billion), Slovenia (€309 million) and Slovakia (€153 million).
The 77 projects supported this year focus on renewable electricity generation, grid modernization, energy efficiency and replacing coal production with lower carbon-intensive fuels.
“To decarbonise our economies, it is essential to increase energy efficiency, deploy more renewable energy sources and expand and modernise electricity networks. With over €15 billion disbursed since its launch in January 2021, the Modernisation Fund has become a key tool in the EU’s green financing toolbox to ensure that all beneficiary countries, regardless of their starting point, can make the green transition a success. At the EIB, we are committed to playing our part, together with the European Commission and the beneficiary countries, in implementing the Modernisation Fund to support Europe’s climate, cohesion and competitiveness objectives,” said EIB Vice-President Ambroise Fayolle.
The Modernisation Fund, financed by revenues from the auctioning of EU ETS emission allowances, is currently aiming to support 13 EU countries in their transition towards climate neutrality. Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia have benefited from the Modernisation Fund since its launch in 2021. The revised EU ETS has extended the scope of the Modernisation Fund, which can now provide financial support to three additional beneficiaries as of 1 January 2024 – Greece, Portugal and Slovenia.
“More than €15 billion of revenues from the EU Emissions Trading System have been paid out so far to support lower-income Member States to modernise their national energy systems. These investments from the Modernisation Fund are an important tool to deliver on our climate and energy goals, boosting innovation and reducing emissions, while clearly demonstrating that our climate and industrial policies can go hand in hand,” said Teresa Ribera, Vice-President for a Clean, Fair and Competitive Transition.
The deadline for submitting investment proposals for potential support from the Modernisation Fund in the next payment cycle is 18 February 2025 for priority proposals and 21 January 2025 for non-priority proposals. Priority investments are those that focus on modernising energy systems, reducing greenhouse gas (GHG) emissions in energy, industry and transport and improving energy efficiency listed in the EU ETS Directive. All other investments eligible for the Modernisation Fund are considered non-priority investments subject to additional scrutiny.