The EBRD will provide $30 million to Premier Energy Distribution to modernize and digitize its distribution networks within the framework of an investment program until 2025.
The European Bank for Reconstruction and Development said that this credit is provided to the largest private operator of the electricity distribution system in Moldova in the framework of the EBRD Green Cities project to finance its investment program until 2025, in particular for modernization, digitization and renovation of distribution networks in central and southern parts of Moldova. According to the EBRD, improving energy sustainability is a key element of the EBRD investment strategy for Moldova for 2023-2028. The loan is the result of Chisinau becoming the first Moldovan city to join the EBRD's 5 billion euros Green Cities flagship program for sustainable urban development to plan for greater sustainability. Chisinau has identified air pollution and climate change mitigation as environmental priorities in its 2020 Green City Action Plan. It is planned that the modernization of the regional power system under EBRD's second Green Cities energy project and Europe's first will help solve both problems by reducing carbon dioxide emissions by more than 2,500 tons per year and helping to reduce losses by 21 percent by replacing old assets with more energy efficient ones. More than half of the investment program will focus on Chisinau and its surroundings. The loan, which will help Premier Energy Distribution transform its conventional distribution network into a digital smart grid, ensuring security of supply and improving services to end users, will be provided in two tranches. About $22 million will cover Premier Energy Distribution's investment program through 2024. Another $8 million will cover its program through 2025. The project will be co-financed by the European Investment Bank, which will also provide a $30 million loan. Premier Energy Distribution is a client of the EBRD; the controlling stake belongs to Emma Capital Limited, a company registered in Cyprus. Premier Energy Distribution covers about 70% of Moldova with its services. The EBRD, a major institutional investor in Moldova, focuses on strengthening the country's energy sustainability, creating conditions that support private sector activity, promoting European standards in all sectors and regional integration to bring domestic producers closer to their markets, as well as developing efficient and sustainable utilities that have a direct impact on people's lives. So far, the EBRD has invested over 2 billion euros in 159 projects in Moldova. // 03.03.2023 - InfoMarket.
