European Commission and EIB disburse €2.5bn Modernisation Fund to 51 projects in 11 EU countries

Announcement

The European Commission and the European Investment Bank announced a €2.5 billion disbursement from the Modernisation Fund to support 51 energy-related projects in 11 beneficiary Member States. The funding is financed by revenues from the EU Emissions Trading System and brings total funding made available from the Modernisation Fund to €23.2 billion since January 2021.

Recipients and allocations

Beneficiary countries in this round are Czechia (€516.8m), Estonia (€44.8m), Greece (€233.9m), Croatia (€109m), Latvia (€40m), Lithuania (€169m), Hungary (€552.3m), Poland (€180m), Portugal (€81.4m), Romania (€636.9m) and Slovenia (€20.2m).

Project focus and examples

The 51 projects target renewable electricity generation, deployment of renewables, energy network modernisation and energy efficiency. Examples include district heating decarbonisation in Czechia, electric trolleybuses in Estonia, industrial process efficiency in Greece, grid digitalisation in Hungary, geothermal district heating in Croatia, electric buses in Latvia, industry decarbonisation in Lithuania, thermal storage and building efficiency in Poland, public building efficiency in Portugal, battery storage in Romania and grid modernisation in Slovenia.

Context and next steps

The Modernisation Fund supports lower-income EU countries in meeting climate and energy targets and complements cohesion policy, the Recovery and Resilience Facility and the Just Transition Fund. Submission deadlines for new proposals are 11 August 2026 for non-priority and 8 September 2026 for priority investments, with priority proposals accounting for over 90% of the portfolio.