Four lessons from the first Portuguese call of Modernisation Fund

Future project promoters should bear in mind that successful applications depend on investment positioning, structure and evidence, not just technology

July 23, 2026
European project funding

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At a glance: the essentials of this article

Portugal’s first Modernisation Fund call shows that strong applications depend on more than the technology being deployed. Evaluators also consider project coherence, technical maturity, financial viability and the applicant’s ability to deliver the investment successfully.

Technology in context. Evaluators assess how the technology contributes to energy modernisation, efficiency and emissions reduction.

Coherent project design. Applications are stronger when every component supports a clear and technically justified common objective.

Technical maturity. Feasibility studies, preliminary engineering and robust emissions methodologies help demonstrate credible project outcomes.

Financial and delivery capacity. Applicants must present realistic costs, implementation capabilities, permitting progress and a clear assessment of key risks.

Early preparation. Organisations can strengthen future applications by consolidating technical, financial and regulatory information before the next call opens.

Portugal’s first Modernisation Fund call has provided an important lesson for organisations seeking to access this European funding instrument: the success of an application does not depend solely on the technology being deployed.

“The Modernisation Fund was established to finance investments that modernise energy systems, improve energy efficiency and reduce greenhouse gas emissions. It is not a generic funding mechanism for clean technologies,” explains Pedro Castro, European Projects consultant at Zabala Innovation. “The way an investment is framed, the technical coherence of the project and its level of maturity are key factors in the assessment process,” he adds.

According to Castro, the experience of this call, which took place in Portugal last year, offers valuable insights into how projects are assessed and the level of preparedness organisations need to demonstrate when applying for future calls.

1. The role of the technology determines eligibility

One of the most important conclusions from the first call is that eligibility and project positioning do not depend exclusively on the technology being deployed.

Project assessment requires an integrated analysis of the investment, its context and the way it contributes to the energy and climate objectives of the Modernisation Fund.

This reinforces the importance of clearly defining the project’s objectives, expected outcomes and contribution to the energy transition.

2. Coherent projects are stronger than artificial aggregations

Another key lesson from the first call relates to project definition and scope.

A strong application does not result from attempting to position a project under multiple priorities. Instead, it stems from the ability to demonstrate a clear, coherent and technically justified primary objective.

Many investments include different technological components and may be submitted within a single application. However, this approach is only robust when there is a clear functional link between those components and a common decarbonisation or energy modernisation objective.

3. The importance of technical maturity

Project maturity also proved to be a significant factor in the assessment process. The strongest investments were those capable of demonstrating technical, financial and operational viability in a credible manner.

Feasibility studies, preliminary engineering and emissions reduction methodologies became key elements in demonstrating the robustness and credibility of project proposals.

The first call highlighted the importance of providing robust technical evidence to support both the investment assumptions and the expected outcomes.

4. Financial viability and implementation capacity carry increasing weight

Alongside the technical dimension, it is essential to demonstrate that the project is financially viable. A budget that is coherent with the proposed activities allows evaluators to assess both the appropriateness of costs and the long-term sustainability of the investment.

It is equally important to demonstrate the applicant’s capacity to deliver the project, including the maturity of permitting procedures and an assessment of the project’s principal risks.

A well-prepared application should demonstrate not only that the project is relevant, but also that there are the necessary conditions in place for its successful implementation.

Preparing today to respond better tomorrow

Well-positioned, coherent and sufficiently mature investments tend to present a stronger value proposition aligned with the objectives of the Modernisation Fund.

While the next Modernisation Fund call for proposals is under preparation to be published, organisations can take important preparatory steps, such as structuring the investment, consolidating technical information, analysing costs, assessing regulatory requirements and identifying the funding instrument best suited to the characteristics of the investment.

This early preparation saves time, reduces risk and improves the quality of future applications when a suitable funding opportunity becomes available. Get in touch with our team of specialists in European funding for energy and climate transition projects.