EU funds €2.17 billion for clean energy infrastructure projects

The EU “Modernization Fund” this year funded Bulgaria (197 million euros), Croatia (88 million euros), the Czech Republic (1.848 billion euros), Estonia (66 million euros), Latvia (5 million euros), Lithuania (11 million euros), Poland (€221 million), Romania (€2.169 billion) and Slovakia (€60 million).

According to media reports, the European Union recently allocated 2.17 billion euros in the “Modernization Fund” to finance the development of clean energy in nine EU member states through 19 selected clean energy infrastructure projects. The funds will help low-income EU countries meet climate and energy targets by 2030.

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The fund will help reduce greenhouse gas emissions and improve energy efficiency in the EU’s energy, industry and transport sectors. The funds come from revenues from the European Union Emissions Trading System (EU ETS). Since its launch in 2021, the “Modernization Fund” has disbursed 9.68 billion euros in EU emissions trading system revenue to help EU member states accelerate the green transition.

After announcing an investment of €2.49 billion in 31 clean energy projects in June, the EU recently disbursed a further €2.17 billion for 19 projects, bringing the total amount of the Modernization Fund in 2023 to €4.66 billion and the number of clean energy projects to 50. The EU’s “Modernization Fund” will finance Bulgaria (197 million euros), Croatia (88 million euros), the Czech Republic (1.848 billion euros), Estonia (66 million euros), Latvia (5 million euros), Lithuania (11 million euros), Poland (€221 million), Romania (€2.169 billion) and Slovakia (€60 million).

The 50 clean energy projects focus on renewable energy generation facilities, energy network modernization, energy efficiency and the replacement of coal-fired generation with lower carbon intensity fuel generation.

These projects include:

· Modernization of Bulgaria’s electricity distribution network to accelerate the electrification of transport and energy storage deployment, as well as the decarbonization and decentralization of energy consumption and production.

· Photovoltaic system developed by a Croatian municipal waste service provider.

·Achieving higher energy standards for public buildings in the Czech Republic and switching from coal to natural gas for district heating.

·Improving the energy efficiency of public buildings in Estonia.

·Introduction of electric vehicles and corresponding charging infrastructure in Latvia.

· Development of renewable energy power generation facilities for large and medium-sized industrial sectors in Lithuania.

· Grid for electric vehicle charging stations in Poland and efficient cogeneration of heat and power for district heating and industry.

Romania’s renewable energy generation capacity, distribution network modernization, rolling stock modernization and natural gas infrastructure to facilitate the replacement of coal-fired generation.

· Modernization of Slovakia’s energy network, including energy storage and energy efficiency improvements.

The “Modernization Fund” generates revenue through the auction of emission allowances under the EU Emissions Trading System. The fund aims to support the transition to climate neutrality in 10 low-income EU countries. These countries include Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia. Under the revised EU Emissions Trading System (EU ETS), the “Modernization Fund” will provide financial support to three additional member states (Greece, Portugal and Slovenia) from 2024.

The Modernization Fund will support investments in the following areas: the production and use of renewable energy, energy efficiency, energy storage, modernization of energy networks (including district heating, pipelines and grids), and the transformation of carbon-dependent regions.

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