EBRD to provide loans for energy efficiency investments in Moldova

“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,” EBRD said in a press release.

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 Euros in grant financing from the EU will be made available for this purpose.

It is expected that MoSEFF will finance about 50 to 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, which is equivalent to an estimated 2.3 million of cubic meters of imported gas.

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

PHOTO: © European Communities, 2009

Deputy Economics Minister Ilarion Popa said that the goal of MoSEFF was to implement certain mechanisms and optimize energy consumption, thus spurring the competitiveness of Moldova-made goods. EBRD has also employed a team of international and local experts, headed by the German company Fichtner, who will help eventual applicants to identify more viable technical and financial solutions and to apply for loans. The team is financed by the European Commission and their assistance is free of charge.

Moldova is the 14th country in which MoSEFF is implemented. The overall amount of proceeds offered so far exceeds 900 million Euros.