Over 100 representatives of local public authorities were introduced to the financing mechanisms of the Eastern Europe Energy Efficiency and Environment Partnership Fund (E5P) and the Nordic Environment Finance Corporation (NEFCO) at a public event organized by the Ministry of Energy in partnership with the two institutions.
The initiative aims to inform and develop dialogue on funding sources for sustainable energy and energy efficiency projects in Moldova.
"The financing opportunities presented today demonstrate that European integration is not an abstract declaration, but a process with an impact on every citizen of the Republic of Moldova. We have access to European funding that will allow for the reduction of energy costs for public institutions. In turn, we intend to launch a residential energy efficiency fund and reform the Energy Efficiency Agency to provide additional tools for public authorities and every family to improve energy efficiency," said Energy Minister Victor Parlicov.
Regarding NEFCO, funding from the Energy Saving Credits (ESC) mechanism can be used for the energy efficiency renovation of public buildings, as well as for the modernization of public lighting. Eligible measures may include thermal renovation of building envelopes, replacement of doors and windows with energy-efficient alternatives, installation of individual thermal substations, modernization of internal heating systems, as well as replacement of fluorescent and/or mercury lighting with LEDs.
Since 2010, NEFCO has funded over 80 projects through the ESC facility, two of which have been implemented in Moldova. Together with E5P, NEFCO has completed 34 energy efficiency projects in Eastern Europe.
The maximum loan amount granted under the facility is 500,000 EUR, the equivalent in lei. NEFCO can finance up to 90% of the project costs. The investment repayment period is up to 5 years, and the loan is granted in lei with an interest rate of 3%. The information presented during the event can be found here.
The objective of the E5P Fund in Moldova is to complement international loans with grants to support energy and environmental efficiency projects resulting in significant energy savings, reduced CO2 emissions, and other greenhouse gases (GHG) reductions.
The E5P Fund for Moldova amounts to over 50 million euros, including a contribution of 1 million euros from Moldova. The European Union is the largest global contributor, with 28.95 million euros. Other donors include the Czech Republic, Denmark, Estonia, Finland, Germany, Lithuania, Norway, Poland, Romania, Slovakia, and Sweden. The E5P Fund in Moldova helps improve energy efficiency, contributing to energy security, economic competitiveness, and political dialogue while having a positive impact on the environment. The average grant-investment ratio is 1 to 5, and the grant-loan ratio is 1 to 3.
Among the funded projects are the modernization of the centralized heating system and trolleybus park in Balti, the Energy Efficiency Project in Chisinau, the Solid Waste Project in Chisinau and the Zone 5, and energy efficiency in healthcare institutions. The information presented during the event can be found here.
SINERGETIKA Consulting was established in 2012 as a response to the need for an individual approach toward each client and the need of presenting technically feasible, flexible, and economically attractive solutions in the energy sector, including but not limited to EE & RES. In the context of financing provided by NEFCO&E5P, SINERGETIKA was contracted to assist APL1 and 2 in implementing investment projects in the Republic of Moldova. The information presented at the event can be found here.