he European Commission and the European Investment Bank (EIB) have announced the disbursement of €2.5 billion from the Modernisation Fund to finance 51 clean energy projects across 11 European Union Member States, supporting the expansion of renewable energy, energy storage, electricity networks and energy efficiency.

Financed through revenues generated by the EU Emissions Trading System (EU ETS), the latest allocation increases the total funding distributed by the Modernisation Fund to €23.2 billion since January 2021.

The funding will be distributed among Romania (€636.9 million), Hungary (€552.3 million), Czechia (€516.8 million), Greece (€233.9 million), Poland (€180 million), Lithuania (€169 million), Croatia (€109 million), Portugal (€81.4 million), Estonia (€44.8 million), Latvia (€40 million) and Slovenia (€20.2 million).

Renewables, storage and grid modernisation

The selected projects cover a broad range of investments designed to modernise energy systems and reduce greenhouse gas emissions. They include renewable electricity generation, battery and thermal energy storage, electricity transmission and distribution networks, energy efficiency measures, district heating decarbonisation and transport electrification.

Among the renewable energy and storage initiatives are stand-alone battery storage projects in Romania, new renewable generation and energy storage capacity in Slovenia, geothermal district heating developments in Croatia, thermal energy storage systems in Poland, and electricity grid digitalisation and expansion in Hungary to facilitate the integration of additional renewable capacity.

Other projects include replacing diesel-powered public transport fleets with electric trolleybuses in Estonia and electric buses in Latvia, improving industrial energy efficiency in Greece and Lithuania, upgrading district heating systems in Czechia, and implementing energy efficiency programmes for public buildings in Portugal.

According to the European Commission, the investments will strengthen the resilience and competitiveness of Europe's energy systems while supporting Member States in achieving their climate and energy targets under their National Energy and Climate Plans (NECPs), as well as the EU's Fit for 55 package and REPowerEU strategy.

Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said the Modernisation Fund demonstrates how revenues generated by the EU ETS can be reinvested into projects that improve Europe's competitiveness during the clean energy transition. She noted that investments in renewable energy, energy storage, grid modernisation and industrial efficiency help build cleaner, more resilient and competitive energy systems.

Wopke Hoekstra, European Commissioner for Climate, Net Zero and Clean Growth, said the Modernisation Fund continues to demonstrate the solidarity embedded in the EU ETS by supporting strategic investments in lower-income Member States, including renewable energy, grid infrastructure, energy storage, district heating and industrial decarbonisation.

The Modernisation Fund supports 13 lower-income EU Member States and is financed through the auctioning of EU ETS emission allowances. The next deadlines for submitting investment proposals are 11 August 2026 for non-priority projects and 8 September 2026 for priority investments, which account for more than 90% of the fund's portfolio and focus on clean energy, emissions reductions and the modernisation of Europe's energy systems.