Following the positive disbursement decision by the European Commission, the European Investment Bank has made the first payments from the Modernisation Fund. A total of EUR 304.43 million has been made available to Czechia (EUR 202m), Hungary (EUR 11.43m) and Poland (EUR 91m) to finance six investment proposals that have been confirmed as priority investments.
The investments will help the three countries to modernise their energy systems and support them in meeting their 2030 energy targets. In particular, they will back:
- the implementation of photovoltaic installations (Czechia);
- the roll-out of smart meter infrastructure (Poland);
- the development of power grids for future electric car charging stations (Poland);
- the promotion of energy efficiency in existing buildings (Poland); and
- the establishment of energy communities (Hungary).
The proposals were submitted during the first disbursement cycle of the Modernisation Fund, from January to June 2021. As a next step, the beneficiaries will have to transfer the money from the Modernisation Fund to the project proponents or scheme managing authorities. They also need to monitor the implementation of the Modernisation Fund investments and submit annual reports. In addition, the deadline for the Member States to submit project proposals to be supported by the Modernisation Fund for the next disbursement cycle is 17 August 2021 for non-priority proposals and 14 September 2021 for priority proposals.
Funded by revenues from the auction of emission allowances from the EU’s Emissions Trading System, the Modernisation Fund aims to support ten EU countries with lower income in modernising their power sector and wider energy systems, boosting energy efficiency, and facilitating a just transition. The Modernisation Fund complements other European instruments such as the cohesion policy and the Just Transition Fund. The Modernisation Fund operates under the responsibility of its beneficiary countries in close cooperation with the European Commission and the European Investment Bank.
- Modernisation Fund
- European Green Deal
- European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy
Source: European Commission