EBRD promotes energy efficiency projects in Moldova

The EBRD is promoting energy efficiency and renewable energy projects in Moldova, helping the economy to reduce its energy intensity with a new €20 million credit line for on-lending to local private companies.

The EBRD’s Moldova Sustainable Energy Financial Facility (MoSEFF) will finance small and medium energy efficiency investments undertaken by local enterprises operating in the industrial, agribusiness, and services sectors with loans of up to €2 million via local partner banks.

MoSEFF will help Moldovan companies to reduce their energy consumption by financing such projects as rehabilitation and replacement of boilers, installation of meters, thermal insulation, refurbishment of heat and power distribution systems, as well as biomass and biofuel projects.

Sub-borrowers undertaking energy efficiency investments will be reimbursed by up to 20 per cent of the projects’ costs upon the completion of the works. In addition they will benefit from free technical assistance in assessing energy saving potential and project implementation. Additional €10 million in grant financing from the EU will be made available for this purpose.

It is expected that MoSEFF will finance about 50-70 projects, which would result in total energy savings of 22,000 MWh per year and an annual reduction in CO2 emissions of 6,600 tones annually, equivalent to an estimated 2.3 million of cubic meters of imported gas.

“Promoting efficient use of natural resources is one of the EBRD’s key priorities. Energy efficiency is particularly important for countries like Moldova, which is dependent on energy imports for 90 per cent of its consumption,” said Henry Russell, EBRD Director for Small Business Finance and Energy Efficiency.

MoSEFF is a continuation of the EBRD’s efforts to help countries reduce their energy intensity. Similar EBRD facilities are currently operating in Bosnia-Herzegovina, Bulgaria, Georgia, Hungary, Kazakhstan, FYR Macedonia, Montenegro, Romania, Russia, Serbia, Slovakia and Ukraine. Overall the EBRD has committed €900 million to Sustainable Energy Financial Facilities in these countries.