The EU and a number of donor countries provided Moldova with 50 million euros in grants through E5P for sustainable energy and energy efficiency projects.
As a result, seven investment projects with a total investment of over 94 million euros were approved. The Ministry of Energy reported that over 100 representatives of local public authorities were familiarized with the financing mechanisms of the Eastern Europe Energy Efficiency and Environment Partnership Fund (E5P) and Nordic Environment Finance Corporation (NEFCO) during a public event organized by the Ministry of Energy in partnership with these two entities. The initiative aims to inform and develop a dialogue on sources of financing sustainable energy and energy efficiency projects in Moldova. "The funding opportunities presented today demonstrate that European integration is not an abstract statement, but a process that affects every citizen of Moldova. We have access to European funding, which will reduce energy costs for public institutions. For our part, we propose launching an Energy Efficient Housing Fund and reforming the Energy Efficiency Agency to provide public authorities and every family with additional energy efficiency tools," said Energy Minister Victor Parlicov. In the case of NEFCO, funding can be used for energy conservation measures following the renovation of public buildings as well as the modernization of street lighting. Eligible measures may include renovation of existing heat generators, installation of individual heat points, insulation of buildings, bridges, pipes, and replacement of doors and windows with energy efficient alternatives, as well as replacement of fluorescent and/or mercury lamps with LED light bulbs. The maximum loan amount available under this financing program is 500 thousand euros, the equivalent in MDL. NEFCO can finance up to 90% of the project cost. The payback period is up to 5 years, the loan is provided in MDL, the interest rate is 3%. The payback is calculated by dividing the total cost of the project by the expected annual cost savings of the project. The purpose of the E5P Fund in Moldova is to complement international loans with grants to support energy efficient and environmental projects, which result in considerable energy savings, reduction of CO2 emissions and other greenhouse gases. As noted, so far the EU and several international donor countries have provided Moldova with nearly 50 million euros in grants through E5P. Thanks to this, 7 investment projects with a total investment of more than 94 million euros have been approved. The average grant to investment ratio is 1 to 5, and the grant to loan ratio is 1 to 3. Among the financed projects are: modernization of the centralized heating system and trolleybus park in Balti, Energy Efficiency Improvement Project in Chisinau municipality, Solid Waste Management Project in Chisinau and in Zone 5, Energy Efficiency Improvement in Healthcare Institutions. // 13.04.2023 – InfoMarket
