Romania receives the most money from the new European fund for batteries, networks, and cleaner energy

The European Commission and the European Investment Bank have approved a new payment of 2.5 billion euros from the Modernization Fund, financed by the revenues of the European emissions trading system. Romania receives 636.9 million euros, the largest amount in this round, for independent electricity storage facilities. In total, 51 projects from 11 member states will finance electricity grids, renewable energy, electric public transport, energy efficiency in industry and public buildings, centralized heating, and energy storage.

Romania receives 636.9 million euros from the new round of the Modernization Fund, the largest allocation to a member state in this tranche, for the development of independent electricity storage facilities. The European Commission and the European Investment Bank announced the payment of 2.5 billion euros for 51 energy projects in 11 EU countries, financed by the revenues of the European emissions trading system.

In short

1. The new tranche of the Modernization Fund is worth 2.5 billion euros and finances 51 projects in 11 member states.

2. Romania receives 636.9 million euros, the largest allocation in this round.

3. The fund is financed by revenues generated by the European emissions trading system.

4. Since January 2021, the Modernization Fund has made available 23.2 billion euros for the energy transition of beneficiary states.

The new funding covers projects related to the production of renewable electricity, the use of renewable sources, the modernization of energy networks, and the increase of energy efficiency. The fund is intended for member states with lower incomes, to help them modernize their energy systems, achieve climate and energy goals, and implement national energy and climate plans.

Romania is the main beneficiary of the round announced now, with 636.9 million euros for the development of independent electricity storage facilities. Storage is one of the essential links in the energy transition: energy produced from renewable sources is not available constantly, and batteries and other storage solutions can help the grid better utilize production during windy or sunny periods and reduce pressure during peak consumption hours.

The second largest allocation goes to Hungary, with 552.3 million euros, for the digitalization and development of the electricity grid. The Czech Republic receives 516.8 million euros, including for the decarbonization of heat production in district heating systems. Greece receives 233.9 million euros for improving the efficiency of production processes in industrial facilities with high energy-saving potential.

Poland receives 180 million euros for thermal energy storage in district heating systems and for increasing the efficiency of multifamily residential buildings in rural areas. Lithuania receives 169 million euros for decarbonizing industry through energy efficiency and replacing polluting technologies. Croatia receives 109 million euros for geothermal energy intended for centralized heating.

Other projects target public transport and public buildings. Estonia receives 44.8 million euros for replacing diesel vehicles with zero-emission electric trolleybuses. Latvia receives 40 million euros for replacing diesel buses with electric buses and installing charging infrastructure. Portugal receives 81.4 million euros for energy efficiency programs in public buildings, while Slovenia receives 20.2 million euros for renewable production, storage, and modernization of electricity transport and distribution networks.

The Modernization Fund operates as a solidarity instrument within the European emissions trading system. Revenues obtained from the auctioning of emissions certificates are directed towards investments in 13 member states with a GDP per capita below 75% of the EU average during the period 2016-2018. The beneficiary states are Bulgaria, the Czech Republic, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovenia, and Slovakia.

Financed investments can cover renewable energy, energy efficiency, storage, modernization of networks, district heating, and just transition in carbon-dependent regions. The fund complements other European instruments, such as cohesion policy, the Recovery and Resilience Facility, and the Just Transition Fund. It is managed by the beneficiary states in cooperation with the European Commission and the European Investment Bank.

Teresa Ribera, Executive Vice-President of the European Commission for a clean, just, and competitive transition, said that the Modernization Fund shows how revenues from the European emissions trading system can be directed towards investments that support competitiveness in the climate transition. She linked the funding to energy efficiency in industry, modernization of networks, increasing the share of renewable energy, and developing storage.

Wopke Hoekstra, Commissioner for Climate, Net Zero, and Clean Growth, said that solidarity is at the heart of the European emissions trading system and that the Modernization Fund supports investments in member states with lower incomes, from industry and district heating to networks, storage, and more modern energy systems.

Ambroise Fayolle, Vice-President of the European Investment Bank, said that accelerating investments in clean energy brings more accessible and safer energy for citizens and companies. He pointed to the role of the fund in developing renewable energy, modern networks, and energy efficiency, with effects on bills, dependence on fossil fuels, energy independence, and Europe's competitiveness.

Over 90% of the Modernization Fund's portfolio consists of priority investments. These target the modernization of energy systems, reducing greenhouse gas emissions in energy, industry, and transport, and increasing energy efficiency. The next deadlines for submitting investment proposals are August 11, 2026, for non-priority projects and September 8, 2026, for priority projects.

https://2eu.brussels/ro/stiri/romania-primeste-cei-mai-multi-bani-din-noua-transa-europeana-pentru-baterii-retele-si-energie-mai-curata