The European Commission said that in its second year of operation, the EU’s Modernization Fund has disbursed 1.39 billion euros to Romania for projects that accelerate the country’s clean energy transition.
The statement from the Commission said that the investment proposal that has received funding is dedicated to building eight solar power plants and two gas-fired power plants, replacing lignite by renewables and gas for electricity generation, as well as modernizing Romania’s electricity networks.
In its second year of operation, the Modernization Fund has disbursed a total of 4.11 billion euros to eight countries. Of the eight beneficiaries, Romania has received the largest disbursement, followed by the Czech Republic with 1.34 billion euro and Poland with 643.2 million euro.
Funded by revenues from the auction of emission allowances from the EU’s Emissions Trading System, the Modernization Fund assists ten EU countries with lower incomes in their transition to climate neutrality.
In October, Romania’s energy minister announced plans to allocate over 900 million euros from the EU’s Modernization Fund to the restructuring of coal-based electricity producer Energy Complex Oltenia.