The Modernisation Fund is a programme from the European Union to support 13 Member States to meet energy targets by helping to modernise energy systems and improve energy efficiency.
The support granted by Member States using the Modernisation Fund resources needs to be compliant with the State aid rules.
Co-financing from private and public entities is possible, as long as State aid rules are respected and the same costs are not already funded by another Union or national instrument (no double funding).
The Modernisation Fund complements other European and mobilises significant resources, which can help beneficiary Member States support investments in line with the REPowerEU Plan and the Fit For 55 package.
The Modernisation Fund envisages two types of investments:
Priority investments that have to fall into at least one priority area as defined by the ETS Directive.
Non-priority investments that do not fall into a priority area but meet the Modernisation Fund objectives and demonstrate reduction of greenhouse emissions.