Modernisation Fund

The Modernisation Fund is a European Union instrument financed from the proceeds of selling emission allowances under the EU ETS system, intended for ten lower-income member states including Slovakia, for modernising energy and decarbonising the economy. Slovakia has billions of euros available from the fund, which the Ministry of the Environment of the Slovak Republic allocates in cooperation with the Environmental Fund through announced calls. The fund supports the construction of renewable energy sources, the modernisation of district heating systems, increasing energy efficiency in industry, energy storage, the modernisation of distribution networks, and the just transition of coal-dependent regions. Applicants are mainly energy companies, heating plants, industrial firms and network operators. Aid intensity is governed by state aid rules and, for priority investments, can reach up to 100% of additional costs. The Modernisation Fund operates outside EU funds, has its own calls and schedule, which is why energy companies follow it as a separate source of financing.