Modernisation Fund

Accelerating the transition to climate neutrality

About

The Modernisation Fund is a programme from the European Union to support 13 Member States to meet energy targets by helping to modernise energy systems and improve energy efficiency.

Partners

The Modernisation Fund operates under the responsibility of the beneficiary Member States in close cooperation with the European Commission and the European Investment Bank.

What is targeted

The Modernisation Fund is a key part of the European Green Deal Investment Plan.
It will target investments in:

renewable_energy

Renewable energy

energy_efficiency

Energy efficiency

energy_storage

Energy storage

energy networks

Energy networks

just transition

Just transition in carbon-dependent regions

Which countries can benefit

bulgaria

Bulgaria

croatia

Croatia

Czech republic

Czech Republic

Estonia

Greece
Hungary

Hungary

Latvia

Latvia

Lithuania

Lithuania

Poland

Poland

Poland

Portugal

Romania

Romania

Slovakia

Slovakia

Slovakia

Slovenia

Conditions for financing

​To obtain financing, the beneficiary Member State has to:

  • demonstrate that the investment complies with the Modernisation Fund requirements set in the ETS Directive and the Implementing Regulation
  • have sufficient funds available in the relevant category on its Modernisation Fund account
  • provide evidence that the investment proposal is in line with the State aid rules
  • demonstrate that the investment complies with “do no significant harm” principle (from 1 January 2025)
  • confirm that the investment complies with any other applicable requirements of Union and national law
  • confirm that there is no double funding of the same costs with another Union or national instrument

ensure that duration of the scheme does not exceed five years

Details on the eligibility criteria are described in the Assessment Guidance Document.

Types of investment

The Modernisation Fund envisages two types of investments:

Priority investments that have to fall into at least one priority area as defined by the ETS Directive.

Non-priority investments that do not fall into a priority area but meet the Modernisation Fund objectives and demonstrate reduction of greenhouse emissions.

Type of support and synergies with other instruments

The support granted by Member States using the Modernisation Fund resources needs to be compliant with the State aid rules.

Co-financing from private and public entities is possible, as long as State aid rules are respected and the same costs are not already funded by another Union or national instrument (no double funding).

The Modernisation Fund complements other European and mobilises significant resources, which can help  beneficiary Member States support investments in line with the  REPowerEU Plan and the Fit For 55 package

In this context, Member States could draw on other national funds and/or European instruments, such as:

Want to know more about the Modernisation Fund?

Our website uses anonymised cookies to give you the best browser experience and to collect aggregated statistics. This does not include online advertising cookies.

Manage cookies