€1.8 Billion of Funding From the Modernisation Fund to Boost for Clean Energy Projects Across the EU

The European Commission and the European Investment Bank have announced a new €1.8 billion disbursement under the EU’s Modernisation Fund, aimed at strengthening clean energy systems and reducing greenhouse gas emissions across the Union. The funding will support 45 projects in 12 Member States, including Portugal, which is receiving Modernisation Fund support for the first time.

This latest allocation brings the total funding distributed through the Modernisation Fund since 2021 to €20.7 billion, covering nearly 300 investments. The Fund is financed through revenues generated by the EU Emissions Trading System (EU ETS) and targets high-impact projects in the energy, industrial, and transport sectors. Its objective is to modernise energy systems, improve efficiency, and help Member States meet their climate and energy commitments.

The €1.8 billion disbursement marks the second allocation in 2025, following €3.66 billion released earlier in the year. Together, these two rounds amount to €5.46 billion in funding for 79 projects across beneficiary countries. Significant allocations were made to countries such as Czechia, Poland, Romania, and Hungary, alongside smaller but strategically important investments in countries including Latvia, Slovenia, and Portugal.

All projects supported this year focus on renewable energy deployment, electricity grid upgrades, energy storage, and energy efficiency improvements. Investments range from expanding electricity storage capacity and modernising transmission networks to improving the energy performance of public buildings and industrial facilities. Several initiatives also target cleaner heating and cooling systems, including geothermal and district heating solutions, particularly in regions heavily dependent on fossil fuels.

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Source: European Commission