The European Commission, following an assessment by the European Investment Bank (EIB) under the Modernisation Fund, has allocated €2.7 billion to support 39 clean energy investment projects across eight EU Member States. Slovenia received its first-ever investment from the Fund, a Member State which became beneficiary in 2024
These projects aim to assist lower-income EU countries in enhancing their clean industrial sectors, reducing greenhouse gas emissions, and improving energy efficiency, aligning with the EU’s 2030 climate and energy goals. Funded by revenues from the EU’s Emissions Trading Systems (EU ETS), the Modernisation Fund has now provided €15.45 billion of investment to support projects in the clean energy transition since its launch in 2021.
This latest disbursement follows the €2.97 billion already allocated in June, bringing the 2024 total to €5.67 billion for 77 projects across 11 countries. The 2024 beneficiaries include Bulgaria (€65 million), Croatia (€52 million), Czechia (€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 supported projects target electricity generation from renewables, energy efficiency, modernization of energy networks, and the transition from coal to lower-carbon fuels. Examples include:
- reinforcement of the electricity transmission grid to support renewables integration in Bulgaria;
- production of electricity from photovoltaics and energy storage by water service providers in Croatia;
- reduction of CO2 emissions during heat production in Czechia;
- improved energy efficiency and promoting renewable energy use in public buildings in Estonia;
- increasing energy efficiency and reducing greenhouse gas emissions in lower-income households in Slovakia;
- investments in renewable electricity generation and energy storage capacities in Slovenia.
Next Steps and Deadlines
The deadline for submitting investment proposals for the upcoming Modernisation Fund disbursement cycle is 18 February 2025 for priority proposals and 21 January 2025 for non-priority proposals. Priority investments include projects aimed at modernising energy systems, reducing greenhouse gas emissions in energy, industry, and transport, and enhancing energy efficiency, as outlined in the EU ETS Directive. Non-priority investments encompass all other qualifying projects for the Modernisation Fund but are subject to additional scrutiny.
Background
The Modernisation Fund is funded by revenues from the auction of emission allowances from the EU ETS and now aims to support 13 EU countries in their transition to climate neutrality. Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia have benefitted from the Modernisation Fund since its launch in 2021.Since 2024, Greece, Portugal, and Slovenia are also beneficiaries.
The Modernisation Fund supports investments in the generation and use of energy from renewable sources, energy efficiency, energy storage, modernisation of energy networks and just transition in carbon-dependent regions. It complements initiatives like the Cohesion Policy and Just Transition Fund, aligning with the REPowerEU Plan and Fit for 55 package.
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