Description
The Modernisation Fund supports the modernisation of energy systems and the improvement of energy efficiency in 13 lower-income EU Member States. Established in 2018 for the 2021-2030 period, it aims to help the beneficiary Member States achieve their climate targets and the objectives of the European Green Deal. The Modernisation Fund is financed by revenues from the auctioning of emission allowances under the EU Emissions Trading System (EU ETS).
level of support
National
type of funding
Grants, Loans
Funding amount
Available funding from the Modernisation Fund is expected to be approximate €57 billion from 2021 to 2030, assuming a carbon price of €75/tCO2. Project funding varies depending on the specific program and type of project being supported.
Eligibility criteria
The beneficiary Member States are Bulgaria, Czechia, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovenia and Slovakia.
Application Process and Timeline
The Modernisation Fund operates under the responsibility of the beneficiary Member States, who work in close cooperation with the European Investment Bank (EIB) and the Commission. Together, they compose the Investment Committee for the Modernisation Fund (Investment Committee). Beneficiary Member States can submit investment proposals to the EIB and the Investment Committee at any time of the year. If the proposed investment falls into a priority area and meets the requirements set out in the EU ETS Directive, the EIB confirms the investment proposal.
Evidence Of Success
A few Member States already awarded funds for national programmes on supporting energy communities.
Expert Opinion
Energy communities can cover all the activities listed under the priority areas of the fund (e.g., renewable energy generation, energy efficiency, energy storage, energy networks, promotion of a just transition in carbon dependent regions). Therefore, they could be supported through this fund.
