Modernisation Fund: Funding for Energy System Modernisation
The Modernisation Fund supports the modernisation of energy systems and improvements in energy efficiency in 13 EU Member States. It is financed through revenues from the auctioning of allowances under the EU Emissions Trading System and contributes to the EU’s energy and climate objectives.
For companies, energy developers, public bodies and other project stakeholders, the key question is not simply whether a project fits the Fund’s broad priorities. Access depends on the relevant Member State’s national arrangements, the applicable scheme or investment route, and the project’s specific eligibility and timing.
Impact Funding Europe helps organisations assess funding fit, understand relevant national routes and prepare a structured funding strategy. We distinguish confirmed programme information from opportunities that are currently open to applicants.
What is the Modernisation Fund?
The Modernisation Fund is an EU funding mechanism established for the 2021–2030 period. It supports the modernisation of energy systems and improvements in energy efficiency in 13 beneficiary Member States.
The Fund is financed through revenues from the auctioning of allowances under the EU Emissions Trading System (EU ETS).
Priority areas
The Fund’s priority areas include:
generation and use of energy from renewable sources, including renewable hydrogen
heating and cooling from renewable sources
reducing overall energy use through energy efficiency, including in industry, transport, buildings, agriculture and waste
energy storage and modernisation of energy networks, including demand-side management, district heating, electricity grids and interconnections
support for low-income households, including measures addressing energy poverty, modernising heating systems and infrastructure for zero-emission mobility
a just transition in carbon-dependent regions, including reskilling, upskilling, education, job-seeking initiatives and start-ups
Depending on the project and national route, relevant themes may include industrial energy-saving measures, renewable electricity, renewable hydrogen, renewable heating and cooling, energy storage, grid modernisation, building efficiency and zero-emission mobility.
These themes are not a guarantee of funding. A project must meet the applicable Fund requirements and the conditions of the national scheme or investment route.
Beneficiary countries
Thirteen Member States are eligible: Bulgaria, Czechia, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovenia and Slovakia.
How projects access the Fund
The Fund does not operate as a single EU-wide call to which companies submit applications directly. Beneficiary Member States select investment proposals and submit them through the Fund’s process. The relevant national authority or scheme administrator determines how project proponents can access support.
The first step is therefore to identify the country, sector, project type and national route that apply to your investment.
Sector pages
Explore detailed guidance for each priority area:
Practical guidance:
How we help
Impact Funding Europe supports organisations with initial project screening, mapping of relevant national routes, review of documentation requirements and funding strategy development.
Discuss your Modernisation Fund project
Official sources
FAQ
What is the Modernisation Fund?
An EU funding mechanism that supports the modernisation of energy systems and improvements in energy efficiency in 13 beneficiary Member States. It is financed through revenues from auctioning EU ETS allowances.
Can a company apply directly to the European Commission or EIB?
No. Member States select and submit investment proposals through the Fund process. Project proponents need to identify the relevant national scheme, authority or selection route.
Which countries benefit from the Modernisation Fund?
Bulgaria, Czechia, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovenia and Slovakia.
Does an approved investment mean a call is open?
No. A confirmed investment or disbursement decision does not by itself establish that new applicants can apply. Check the current official national scheme or call documentation.
Are all projects in a priority sector eligible?
No. The sector is only an initial indication of potential fit. Applicant eligibility, technical conditions, eligible costs, timing and national rules must also be satisfied.
Modernisation Fund scope, timelines, eligibility and funding routes depend on official EU documents and Member State decisions. This page is for general information and does not constitute legal advice or a guarantee of funding.
