On June 24, 2024, the European Union (EU) allocated a substantial sum of 2.967 billion euros from the Modernization Fund to support 39 energy projects across 10 member states. These investments are aimed at modernizing energy systems and significantly reducing greenhouse gas emissions in key sectors such as energy, industry and transport, while also enhancing overall energy efficiency. This disbursement marks the largest single payment through the Modernization Fund to date, contributing to a cumulative expenditure of 12.65 billion euros as reported by AERS in January 2021.
The recipient member states of this first payment in 2024 include Bulgaria (65.2 million euros), Croatia (52 million euros), Czech Republic (835.2 million euros), Estonia (24.1 million euros), Hungary (76.8 million euros), Latvia (26.8 million euros), Lithuania (59 million euros), Poland (697.5 million euros), Romania (1.095 billion euros), and Slovakia (35 million euros).
These investments will fund a variety of initiatives, such as strengthening electricity transmission networks to integrate renewable energy sources in Bulgaria, introducing photovoltaic and energy storage capabilities for public water service providers in Croatia, supporting households in the Czech Republic to acquire and install new photovoltaic systems, and modernizing district heating systems with renewable energy sources in Hungary. Additionally, Romania will implement a support scheme for contracts producing electricity from renewable sources.
The Modernization Fund is financed through revenues generated from the auctioning of emission allowances under the EU Emissions Trading System. Its primary objective is to aid thirteen lower-income EU member states in their transition towards achieving climate neutrality.
