The European Commission and the European Investment Bank (EIB) announced this on Thursday, having approved funding for 51 energy projects aimed at modernizing energy systems and accelerating the transition to a low-carbon economy, according to romaniajournal.ro.
With €636.9 million allocated, Romania receives the largest share among all recipient countries, ahead of Hungary (€552.3 million) and the Czech Republic (€516.8 million).
Funding to Support Energy Storage Capacities
According to the European Commission, the funds allocated to Romania will be used to finance the development of standalone battery-based energy storage systems, investments in which are considered necessary to integrate an increasing share of renewable energy into the national energy system.
Energy storage systems help balance the power grid, reduce the volatility of renewable energy generation, and strengthen energy security.
2.5 billion euros for the modernization of European energy systems
Overall, the European Commission and the EIB have approved the allocation of €2.5 billion in new funding from the Modernization Fund, an instrument financed by revenues from auctions of carbon emission allowances under the EU Emissions Trading System (EU ETS).
In addition to Romania, funding was allocated to the Czech Republic (516.8 million euros), Hungary (552.3 million euros), Greece (233.9 million euros), Poland (180 million euros), Lithuania (169 million euros), Croatia (109 million euros), Portugal (81.4 million euros), Estonia (44.8 million euros), Latvia (40 million euros), and Slovenia (20.2 million euros).
The approved investments will help expand renewable energy production, modernize power grids, improve energy efficiency, and reduce greenhouse gas emissions in the energy, industrial, and transportation sectors.
More than 23 billion euros have been allocated since 2021
The European Commission stated that, including this latest disbursement, the total amount allocated by the Modernization Fund since January 2021 has reached 23.2 billion euros.
The fund is available to 13 EU member states whose per capita GDP between 2016 and 2018 was below 75% of the EU average. It supports investments in renewable energy, energy efficiency, energy storage systems, the modernization of electricity and heating grids, and the transition of regions that remain dependent on fossil fuels.
The European Commission stated that these investments will help modernize Europe’s energy infrastructure, reduce dependence on imported fossil fuels, boost industrial competitiveness, and advance the bloc’s climate goals under the “Fit for 55” package and the REPowerEU plan.
Unfortunately, funds from this initiative are not yet available to EU candidate countries or those negotiating accession to the EU, such as Moldova or Ukraine.
