The European Commission and the European Investment Bank (EIB) have disbursed €2.5 billion from the Modernisation Fund to finance 51 energy projects across 11 member states.
The money, drawn from revenues raised by the EU Emissions Trading System (ETS), is aimed at boosting renewable power, upgrading electricity grids, improving energy efficiency and cutting greenhouse gas emissions.
The payout takes the total mobilised by the instrument since January 2021 to €23.2 billion.
Romania was the largest beneficiary in this round, receiving €636.9 million, followed by Hungary on €552.3 million and the Czech Republic on €516.8 million.
The remaining funds were shared between Greece, Poland, Lithuania, Croatia, Portugal, Estonia, Latvia and Slovenia.
The selected projects range from new renewable generation and energy storage to grid modernisation and efficiency measures across the energy, industry and transport sectors.
Among the schemes are the decarbonisation of urban heating in the Czech Republic, the replacement of diesel buses and trolleybuses with electric vehicles in Estonia and Latvia, and the digitalisation and expansion of the electricity grid in Hungary.
Other projects include geothermal district heating in Croatia, efficiency upgrades at industrial sites in Greece and Lithuania, and the renovation of housing and heating systems in Poland.
The fund would also support the refurbishment of public buildings in Portugal, battery storage in Romania and expanded renewable capacity alongside grid modernisation in Slovenia.
The Modernisation Fund is financed by revenues from the auctioning of carbon allowances under the EU’s carbon market and is designed to help the bloc’s lower-income members pay for their energy transition.
Bulgaria, Croatia, the Czech Republic, Estonia, Greece, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovenia and Slovakia are currently eligible.
The Commission said the instrument complemented other EU programmes such as cohesion policy, the Recovery and Resilience Facility and the Just Transition Fund, with the stated aim of speeding up energy modernisation and reducing European reliance on fossil fuels.
Member states would be able to submit further proposals until August 11 for non-priority investments and until September 8 for priority projects.
Priority schemes account for more than 90 per cent of the financed portfolio and focus on modernising energy systems and cutting emissions.
