Member States in the EU have agreed to invest €217 million (£165m) in trans-European energy infrastructure projects.
A total of 15 projects have been selected following a call for proposals under the Connecting Europe Facility (CEF), a funding programme for infrastructure.
The projects, mainly in Central and South Eastern Europe, are expected to increase energy security and help end the isolation of Member States from EU-wide energy networks.
They will also contribute to the integration of renewables into the power grid, the European Commission said.
In the gas sector, some of the funds will be used for studies to modernise the Bulgarian gas transmission network and connect supplies from Algeria and Spanish LNG terminals with the rest of Europe.
The development of the electricity infrastructure will also benefit from financial help, including environmental and engineering studies for the Germany-Denmark interconnection.
Miguel Arias Cañete, European Commissioner for Climate Action and Energy said: “Today, we are targeting those regions in Europe which need it the most. With this funding we will help secure supplies and fully integrate Europe’s energy market by connecting networks across Europe.
“We must press ahead with the modernisation of our energy networks to bring any country still isolated into the European energy market. Modern energy networks are also crucial to ensuring efficient use of our energy resources and therefore key to reaching our climate goals.”