The Modernisation Fund is a dedicated funding program established by the European Union to support 13 lower-income Member States in modernizing their energy systems and improving energy efficiency. The beneficiary countries are Bulgaria, Croatia, Czechia, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia, and Slovenia.
Financed through revenues from the auctioning of emission allowances under the EU Emissions Trading System (EU ETS), the fund aims to facilitate the transition to climate neutrality by investing in:
- Renewable energy generation and usage: Projects that promote the adoption of renewable energy sources, including renewable hydrogen.
- Energy efficiency: Initiatives that reduce overall energy consumption across various sectors such as industry, transport, buildings, agriculture, and waste management.
- Energy storage and network modernization: Enhancements to energy storage solutions and the modernization of energy networks, including demand-side management, district heating, electricity grids, and increased interconnections between Member States.
By focusing on these areas, the Modernisation Fund contributes to the objectives of the European Green Deal, aiming to achieve climate neutrality across Europe by 2050.