Investment of 1.8 billion euros drives the future of clean energy

The new European financial boost for clean energy changes the game for buildings, industries, and municipalities looking to reduce costs and emissions intelligently. Here’s how to turn opportunities into concrete results without wasting time or money.

Investment of €1.8 billion: immediate impact on clean energy and building comfort

The joint announcement from the European Commission and the European Investment Bank brought focus and scale: a package of €1.8 billion from the Modernization Fund to accelerate 45 investments in 12 Member States. This injection adds to the disbursement from July (€3.66 billion for 34 projects), bringing the total annual to €5.46 billion and 79 investments. The signal is clear: the energy transition has moved from promise to execution, with clear targets and practical pathways.

The Fund was designed to modernize energy systems with real effects in reducing GHG emissions in energy, industry, and transport. The projects prioritize what generates the most climate value per euro invested: efficient electrification, renewable energy with storage, smart demand management, more flexible grids, and clean heat solutions. The goal is twofold: meet climate and energy targets and enhance competitiveness, cutting fossil fuel imports and stabilizing costs for families and businesses.

Portugal appears for the first time among the beneficiaries, with funding focused on renewable heating and cooling, leveraging geothermal potential in natural mineral water and medical thermal facilities, complemented by other renewable sources. This is a segment with enormous room for reducing fossil consumption: hotels, spas, and health facilities with continuous heating/cooling needs have perfect profiles for heat pumps, solar thermal, and low enthalpy geothermal.

This European boost is aligned with other levers: the EIB has raised its support for projects aligned with REPowerEU to €45 billion, InvestEU has already mobilized over €218 billion in investment, and the LIFE program has allocated €358 million to 132 new environmental and climate projects in Europe (with Portuguese participation). On a global scale, the EU has launched a forum with the IEA and partners to attract more capital to emerging clean technologies, with COP30 serving as a stage for commitments that unlock scale.

What this means for homes and buildings

The solutions prioritized by the Fund coincide with what most reduces costs and emissions in buildings: advanced insulation, efficient windows, heat recovery ventilation, and integrated heat pumps with photovoltaics and storage. When a robust thermal envelope is combined with efficient systems and smart management, the results are consistent: fewer consumption peaks, increased comfort, less maintenance, and predictable operation throughout the year.

For municipalities, there is room for renewable heat networks, energy retrofitting of schools and sports facilities, electric fleets, and efficient public lighting. For businesses, tailored solutions: electrified thermal processes, recovery of waste heat, hybrid heat/cooling systems, and self-generation with PPAs. In the end, the essential message remains: clean energy is also operational strategy — and now it has funding to be accelerated.

How to reduce your energy bill with the new boost to clean energy

The most immediate benefit of a modern energy ecosystem is felt in the monthly bill. The investment package creates a favorable context for those looking to make the right leap: more efficient equipment, targeted incentives, and tested solutions at increasingly accessible prices. In residential buildings and condominiums, the combination of envelope improvement and heat electrification is the least risky path.

A simple strategy starts with the hierarchy of consumption: reduce losses, choose the right equipment, and only then install renewable generation. It is common to see solar panels installed on poorly insulated houses; the result is oversized systems and inconsistent comfort. With well-treated walls, roofs, and frames, heat pumps operate at low temperatures, increase COP, and ensure stable comfort in winter and summer.

Three pillars that work together

First, envelope: continuous insulation, cutting thermal bridges, performance frames, and passive shading. Second, system: heat pump sized for low temperature, inertia tank, zone control, and ventilation with heat recovery. Third, energy: solar photovoltaics, possibly batteries, and integration with dynamic tariffs to shift consumption to cheaper hours.

When these pillars align, base consumption falls and comfort rises. In Atlantic and Mediterranean climates, passive cooling and solar management do half the work, with the heat pump covering the rest with smooth modulation. In apartments, high-efficiency monoblock and multisplit solutions, combined with targeted envelope improvements, can deliver remarkable results with minimal construction.

Quick adjustments, real gains

• 🧰 Calibrating the supply temperature of radiant heating/convector systems to 35–45ºC greatly improves the heat pump’s COP.
• 🌞 Scheduling loads for DHW and appliances during solar hours reduces the average kWh cost.
• 🪟 Sealing leaks in doors/windows and adjusting openings resolves discreet losses that cost a lot.
• 📶 Zone control and thermostats with well-configured hysteresis avoid short cycles and noise.
• ⚠️ Avoid oversizing of heat pumps. Size according to the project load, not based on “what if” scenarios.

For those retrofitting, there are easy synergies: replacing water heaters with heat pumps for DHW, adding 2-4 kWp of PV on the roof, and enhancing the envelope at critical points. In service buildings, recovering heat from HVAC to preheat DHW is a classic efficient solution that pays for itself. Whenever possible, centralizing thermal production simplifies maintenance and saves usable space.

If the goal is to cut costs without sacrificing comfort, the key word is integration. Fewer appliances working against each other, more systems working together. The cheapest energy is the energy you don’t consume — and the second cheapest is the energy produced on the roof at the right times.

Funding opportunities, 2026 deadlines, and priority technologies related to the €1.8 billion investment

The Modernization Fund operates on two tracks. The priority investments (over 90% of the portfolio) focus on modernizing energy systems, cutting emissions in energy/industry/transport, and energy efficiency listed in the CELE Directive. The remaining are non-priority and undergo additional scrutiny. The upcoming deadlines for proposal submissions are January 15, 2026 (non-priority) and February 12, 2026 (priority). For municipalities, energy service companies, and industries, these milestones are decisive in project scheduling.

In parallel, complementary initiatives expand the scale: the EIB has raised its support for projects aligned with REPowerEU to €45 billion, InvestEU has already mobilized €218 billion in investments in the EU, and LIFE has financed 132 projects with €358 million, including three in Portugal. At a global level, the EU is leading a forum with the IEA and partners to accelerate capital for emerging clean technologies, with projects to be formalized in the context of COP30.

Who is receiving funding and for what

The disbursements in 2025 indicate the direction: modernization of grids, electrification of heat, renewables with storage, and deep efficiency. The table below illustrates amounts allocated to various Member States and examples of focus.

Portugal enters with a symbolic and replicable project: renewable heating and cooling in thermal and mineral water facilities. The health tourism sector can become a showcase of efficiency and comfort, demonstrating that well-being and decarbonization go hand in hand.

How to prepare a winning application

Companies and municipalities should align four fronts: robust base diagnostics (consumptions, thermal loads, hourly profiles), technical design with measurement and verification (IPMVP), economic-financial feasibility, and licensing plan. For individuals, the path is to take advantage of national and regional incentives, articulate solutions with energy certification, and work with designers who integrate architecture, systems, and operation. A useful suggestion: consult repositories of good practices and technical guides on specialized platforms like Ecopassivehouses.pt.

The clock is already ticking. With deadlines set, the secret is to turn ideas into clear and technically sound documents, ready for evaluation.

Practical cases and project strategies: from geothermal to heat pumps in real buildings

The numbers come to life when translated into projects on the ground. In the Portuguese context, low-enthalpy geothermal adapted to thermal facilities is a natural combination: stable ground temperature, continuous need for heat, and water as a vector of comfort. The solution can integrate vertical probes, high-efficiency water-to-water heat pumps, and internal low-temperature networks for radiant floor heating and DHW.

Imagine an indoor thermal complex operating all year round. The base thermal load is covered by geothermal; seasonal peaks are met by air-to-water heat pumps with cascade control; summer cooling takes advantage of geothermal free-cooling where feasible; and solar thermal preheats DHW. Centralized technical management orchestrates everything, prioritizing the cheapest and cleanest energy. The result is not only a significant emission cut: it’s constant comfort, water at the right temperature, and technical silence, a detail that the user feels even without seeing the machines.

Case study: “Termas do Vale Claro” (didactic scenario)

In this scenario, the conversion replaces gas boilers with two 120 kW water-to-water heat pumps and four 30 kW air-to-water pumps, with 14 geothermal probes at 120 m and 20 m³ of thermal inertia. The control ensures a supply temperature of 40ºC for space heating and 50-55ºC for DHW with programmed thermal disinfection. Solar thermal on the roof provides preheating, and 100 kWp of photovoltaics powers the pumps during sunny hours. The preventive maintenance plan focuses on water quality, filter cleaning, and verification of seasonal COP.

Why is it replicable? The hotel sector, hospitals, and spas have similar consumption profiles. With a well-designed retrofit, it is possible to stabilize costs and reduce energy volatility. To reduce risks, energy performance contracting (EPC) shifts part of the risk to those who design, install, and operate.

Strategies for multifamily housing and services

In condominiums, low-temperature distribution with fan coils and radiant floor heating facilitates efficient operation of heat pumps. Thermostatic valves, hydraulic balancing, and zone control are just as important as the equipment. In office buildings, heat recovery from HVAC can cover much of the DHW, and indirect evaporative cooling reduces peaks in summer.

For light industry, gains are found in variable speed drives, leak-free compressed air, heat recirculation from processes, and electrification of low/mid-temperature furnaces. In many factories, the “invisible project” — fine-tuning, scheduling, and sensors — generates surprising savings with modest investment.

What unites these examples is the design principle: right loads, right temperatures, right control. When the system speaks the same language, clean energy yields double.

90-day action plan to leverage the investment and accelerate efficiency in your home, business, or municipality

With the deadlines of the Modernization Fund in sight, having a clear guideline prevents hasty decisions. The following three-month plan helps move from idea to construction with focus and method, whether for a residential building, a public facility, or a hotel unit.

Months 0-1: Diagnosis and objectives

1. 📊 Data collection: bills from the last 12-24 months, hourly profiles (if available), DHW flow, supply/return temperatures, equipment inventory.
2. 🧭 Clear goal: reduce kWh/m², stabilize comfort (temperature/humidity), decrease contracted power — define numbers, not vague intentions.
3. 🏗️ Envelope inspection: thermal bridges, frames, shading, infiltrations. Record with photos/notes to prioritize measures.

Months 1-2: Technical solution and feasibility

1. 🛠️ System concept: heat pump suitable for the profile (air-to-water vs water-to-water), target temperatures, inertia tank, zone control, VMC with recovery.
2. 🔌 Renewable integration: size photovoltaics for daytime consumption and add batteries only when it makes tariff/operational sense.
3. 🧪 Simulation: compare scenarios (baseline vs measures) and define M&V according to IPMVP. Without measurement, there’s no performance.
4. 💶 Financing strategy: cross-check possible applications (Modernization Fund, EIB/InvestEU lines, national incentives) and EPC models.

Months 2-3: Deliverables and construction

1. 📁 Complete dossier: project, descriptive memory, timeline, CAPEX/OPEX, maintenance plan, M&V, and risk mitigation.
2. 🤝 Procurement: request for proposals with performance requirements (seasonal COP, noise, warranty, maintenance SLAs) and weighted criteria.
3. 🏁 Commissioning: assisted start-up, operational training, heating curves, and monitoring with simple alarms.

In a domestic scenario, small actions anticipate the construction: adjusting thermostats, sealing infiltrations, installing aerators, and scheduling consumption for solar energy. In hotels and spas, replacing boilers with heat pumps utilizing geothermal and solar thermal can be phased by wings or areas, maintaining operation and guest comfort. In schools, starting with lighting and HVAC control generates rapid results before larger interventions.

A golden rule wraps up the plan: simple design, simple operation. The clearer the system, the more predictable the bill, and the better the comfort — exactly what the European investments now allow to accelerate.

Source: www.industriaeambiente.pt