Modernisation Fund

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 Modernisation Fund is a key part of the European Green Deal Investment Plan. It will target investments in:

• Renewable energy
• Energy efficiency
• Energy storage
• Energy networks
• Just transition in carbon-dependent regions

Investments are being made to modernize energy systems and shift towards more efficient energy use. The Modernisation Fund is available to 13 EU countries - Lithuania, Poland, Latvia, Estonia, the Czech Republic, Hungary, Romania, Slovakia, Croatia, Bulgaria, Portugal, Greece and Slovenia.

The funds allocated to Lithuania from the Modernisation Fund must be used between January 1, 2021, and December 31, 2030.

During the 2021–2030 period, Lithuania is entitled to 2.57% of the total Modernisation Fund resources, and an additional 1.9% during the 2024–2030 period.

At least 80% of the Modernisation Fund resources allocated to Lithuania from its 2.57% share, and at least 90% of the funds from the additional 1.9% share, must be used to finance priority investments:

• Production and use of renewable energy sources, including renewable hydrogen.
• Generation of heat and/or cooling from renewable energy sources.
• Reducing combined heat and electricity consumption by increasing energy efficiency in sectors such as industry, transport, buildings, agriculture, and waste management.
• Energy storage, modernization of energy networks, including implementing energy demand management measures, modernizing district heating pipelines and electricity transmission networks, increasing interconnection capacities between member states, and creating or expanding fully zero-emission mobility infrastructure.
• Support for low-income households, including those in rural and remote areas, to combat energy poverty.
• Activities outlined in Lithuania's Territorial Just Transition Plan for fossil fuel-dependent regions, supporting worker relocation, retraining, upskilling, education, job search initiatives, and startups, while maintaining dialogue with civil society and social partners aligned with relevant actions.

All investments eligible for the Modernisation Fund but outside the scope of the priority areas are considered “non-priority investments.” Non-priority investment areas can only be financed after approving 90% of Lithuania's allocated funds for priority investment areas. The Modernisation Fund cannot finance investments related to solid fossil fuels.

Investment Approval Process. The responsibility for the Modernisation Fund’s operation lies with the beneficiary member states. Investment proposals from member states, including Lithuania, are evaluated by the European Investment Bank and the European Commission’s Investment Committee.

More information.

Approved schemes / measures (in Lithuanian).