The Czech Republic is the first in the EU to launch a Modernization Fund. Approximately 150 billion will be distributed
Production and distribution of thermal energy from renewable sources, construction of photovoltaic power plants or optimization of energy consumption in production and technological processes. From today, these and similar projects can apply for the so-called pre-registration calls from the 150 billion Modernization Fund. The financial means will flow from European sources and their final amount will be determined by the proceeds of auctions from emission allowances, continuously until 2030. The use of funds from the Modernization Fund should start in full in the first half of next year.
The EU wants to help economically weaker countries
The aim of the Modernization Fund is to help the economically weaker countries of the European Union to develop economically by supporting low-carbon technologies and energy. The State Environmental Fund of the Czech Republic was designated as the recipient of he financial means for the Czech Republic. The investments should lead to significant energy savings, reduced greenhouse gas emissions and improved air quality. The fun should also save over 131,000 jobs.
Projects without limit
The financing of projects from the Modernization Fund will start next year through nine separate programs. Currently, the pre-registration calls concern the first three programs focused on: Modernization of thermal energy supply systems, New renewable energy sources and Improving energy efficiency and reducing greenhouse gas emissions in industry in the EU ETS. Project proposals are not limited by any financial limit and applicants can submit them in the period from 30 November to 1 February 2021.
"In the implementation of the Modernization Fund, we are the furthest in terms of readiness for applicants compared to other countries, and we are among the premiants. The General Program Document of the Modernization Fund is currently in the inter-ministerial comment procedure and our ambition is for the government to approve it by the end of this year. We would like to announce the first calls in the first quarter of next year,
states the Minister of the Environment Richard Brabec.
The main goal is to activate investors
The main goal of launching pre-registration calls is to activate investors, get an overview of their planned projects, their implementation schedule and method of financing.
As the resources from the Modernization Fund consist of revenues from auctions of emission allowances, which will be gradually auctioned until 2030, the total allocation of available funds will depend on many factors, including the development of the price of emission allowances.
"The General Program Document stipulates only the expected percentage distribution of the total allocation of the Modernization Fund between the listed programs, or individual areas of support. The distribution of funds can thus be specified with regard to the further development and objectives of these areas, including the consideration of interest in each of them. Simply put, if the interest of applicants in one area outweighs the interest in another, it is not a problem to move funds between programs so as to achieve the greatest possible environmental effect for the modernization of our energy sector. To meet our climate protection goals, we must shift to top speed,"