Call For Project Proposals For Financing Via The EU Modernisation Fund

• Published date: 07 October 2020
• Subject Matter: Energy and Natural Resources, Energy Law, Oil, Gas & Electricity, Renewables
• Law Firm: Schoenherr Attorneys at Law
• Author: Ms Monica Cojocaru and Simona Lehniuc

Romania launched a call for project proposals from companies interested in attracting financing from the EU Modernisation Fund, for investments in sectors such as renewable energy, energy efficiency, energy storage or the modernisation of energy networks.

Interested investors have less than two weeks left to apply if they want to be included in the list of indicative proposals to be submitted by the Romanian Ministry of Economy, Energy and Business Environment with the European Investment Bank and the Investment Committee.

Why apply?

With an expected budget of EUR 14bln in 2021 - 2030, the EU Modernisation Fund is one of the key funding instruments aimed at achieving the 2030 EU climate objectives, as set out in the European Green Deal. It was created to help 10 lower-income EU Member States, including Romania, modernise their energy systems and improve their energy efficiency during the 2021 - 2030 period.

The EU Modernisation Fund is financed from revenues achieved from the auctioning of 2 % of the total greenhouse gas emission allowances for 2021 - 2030 under the EU Emissions Trading System.

Investors could benefit from EU Modernisation Fund financing of up to 100 % of the project value in case of priority investments and up to 70 % of the project value in case of non-priority investments, provided the maximum funding is in line with EU State aid rules.

What projects are eligible?

At least 70 % of the EU Modernisation Fund will go to priority investments, namely those aimed at:

• the generation and use of electricity from renewable sources;
• improving energy efficiency (including in transport, buildings agriculture, waste, and except in energy efficiency related to energy generation using solid fossil fuels);
• energy storage;
• modernising energy networks (including district heating pipelines, grids for electricity transmission and the increase of interconnections between Member States);
• support to a just transition in carbon-dependent regions in the beneficiary Member States, to support the redeployment, re-skilling and up-skilling of workers, education, job-seeking initiatives and start-ups, in dialogue with social partners.

The remaining 30 % of available funds will target investments that qualify for the EU Modernisation Fund, but do not fall under the above priority areas (so-called "non-priority investments").

How do you know your company is eligible?

Here is a quick checklist for investors to assess whether they are eligible for funding from the EU...