EU Modernisation Fund Boosts Green Transition with €2.4 Billion Disbursement

European Union's Modernisation Fund has disbursed an impressive €2.4 billion to 31 projects in seven beneficiary countries.

These investments will be pivotal in modernising energy systems, reducing greenhouse gas emissions across energy, industry, and transport, and improving energy efficiency. This joint largest disbursement marks a significant step forward in Europe's green transition. It enables Member States to reduce dependency on Russian fossil fuels, achieve their 2030 climate and energy targets, and contribute to the EU's long-term commitment to climate neutrality by 2050.

Thanks to the robust revenues from the European Emissions Trading System, additional investments were made in several countries. Among these investments, two notable projects supported by the Modernisation Fund stand out: supporting cogeneration for district heating in Poland and new renewable electricity production capacities, district heating, and gas infrastructure to replace coal-powered energy in Romania.

The district heating project in Poland, with a disbursement of €47 million, aims to provide efficient district heating solutions to communities in the country. By leveraging cogeneration technologies, the project will integrate the production of heat and electricity, offering a sustainable and resource-efficient approach to district heating. This initiative acknowledges the importance of district heating as a critical component of Poland's energy transition, reducing reliance on traditional, carbon-intensive energy sources and promoting the adoption of cleaner alternatives.

In Romania, the Modernisation Fund's support of new renewable electricity production capacities, district heating systems, and gas infrastructure aims to replace coal-powered energy. This project represents a significant step towards decarbonising Romania's energy sector. The project will reduce greenhouse gas emissions and improve the country's overall energy efficiency by introducing renewable energy sources and upgrading district heating infrastructure.

Both the Polish and Romanian projects supported by the Modernisation Fund underscore the importance of district heating as a crucial component of the countries' energy transitions. By optimising heat distribution and integrating renewable energy sources, these initiatives promote energy efficiency, reduce carbon emissions, and enhance the resilience and sustainability of the heating sector. For Member States interested in submitting investment proposals, the next deadline for non-priority proposals is 15 August 2023, while priority proposals must be submitted by 12 September 2023. We encourage all eligible Member States to seize this opportunity and contribute to Europe's green future.

If you want to know more about Modernisation Fund, please get in touch with Gabriele ([email protected] )