The European Union’s Modernisation Fund has disbursed around €7.5 billion around 10 member states since January 2021, The fund aims to modernise their energy systems, reduce greenhouse gas emissions, and improve energy efficiency.
The Modernisation Fund aims to support ten EU countries with lower incomes in their transition to climate neutrality. It supports investments in renewable energy, energy efficiency, energy storage, modernisation of energy networks, and just transition in carbon-dependent regions. It operates under the responsibility of its beneficiary countries in close cooperation with the European Commission and the European Investment Bank (EIB).
These investments help member states reduce dependency on Russian fossil fuels, meet their 2030 climate and energy targets, and contribute to the EU’s long-term commitment to reaching climate neutrality by 2050. Examples of proposals supported include modernisation of the electricity distribution grid in Bulgaria, deploying photovoltaic and energy storage capacity in Croatia, improving energy efficiency and energy savings in new buildings, introducing electric vehicles and corresponding charging infrastructure in Latvia, renovation of multi-apartment buildings in Lithuania, supporting cogeneration for district heating in Poland, and new renewable electricity production capacities in Romania.
