Romania secures an energy transition funding with 1.1 billion euros from EU modernization fund

The Balkan region is experiencing a remarkable influx of financial resources as Romania secures an additional 1.1 billion euros from the EU Modernization Fund. This latest funding injection reinforces the growing trend of substantial investment being drawn into the Balkans. Alongside Romania, countries such as Bulgaria, Croatia, and the Czech Republic have also been allocated significant amounts from the fund, totaling 2.4 billion euros across 31 projects.

With Romania receiving the largest share of funds, these resources are specifically designated for crucial initiatives aimed at bolstering the country’s energy sector. The investments will focus on the development of renewable electricity production, urban heating, and gas infrastructure projects, all geared towards replacing coal-based energy sources and aligning with the ambitious climate and energy objectives set by the European Union.

The European Commission affirms that these substantial investments will not only reduce the beneficiary member states’ reliance on fossil fuels imported from Russia but also enable them to meet their climate and energy targets for 2030. Additionally, the funds will contribute to the EU’s broader commitment to achieving climate neutrality by 2050.

Notable among the approved projects for Romania is the Tuzla-Podisor gas pipeline, which has been granted a significant funding allocation of 85.5 million euros. This pipeline will play a crucial role in strengthening Romania’s energy infrastructure by facilitating the transportation of gas from the Neptun Deep. Furthermore, three schemes have been designated to support investments in new electricity production capacities derived from renewable sources, with a substantial total funding allocation of 700 million euros.

The EU Modernization Fund, financed through the auctioning of emission allowances, aims to support ten lower-income countries in their transition towards climate neutrality by modernizing their energy sectors, improving energy efficiency, and facilitating a just and equitable transition. The beneficiary countries, including Bulgaria, the Czech Republic, Croatia, Estonia, Latvia, Lithuania, Poland, Romania, Slovakia, and Hungary, are poised to benefit from the significant financial resources provided through the fund.

Since January 2021, the Modernization Fund has disbursed a remarkable 7.5 billion euros for investment projects across the ten beneficiary states, contributing significantly to their sustainable development efforts. With the Balkan region emerging as a focal point for substantial financial support, these investments are poised to drive transformative change, propel the countries towards a greener future, and enhance their energy infrastructure to meet the EU’s climate goals.

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