€5.5 Million for Moldovan Private Companies to Improve Energy Efficiency

THE European Bank for Reconstruction and Development (EBRD) is promoting energy efficiency in Moldova with a €5.5 million loan for private companies undertaking energy-saving measures and renewable energy projects.

The loan to CB “MOBIASBANCA-Groupe Société Générale” for on-lending will be complemented by European Union (EU) grants to provide direct incentives for borrowers of up to 20% of the loan amount.

More than 90% dependent on energy imports, Moldova spends over 30% of its import budget on energy. Such a high level of energy dependency, coupled with a waste of resources at end-user level and obsolete energy infrastructure, makes Moldova one of the most energy-intensive countries in the region. On average, Moldovan companies use three times more energy to produce the same output as companies in the EU.

The financing is available under the Moldovan Sustainable Energy Financing Facility Extension (MoSEFF II) framework. Since 2010, more than 150 businesses have been helped to cut their energy bills and CO2 emissions. The resulting energy savings amount to over 23,000 MWh per year and could meet the energy needs of residents in Moldova’s second-largest city, Bălți, for more than a year. These projects helped reduce CO2 emissions by over 58,000 tonnes per year, equivalent to the annual emissions produced by over 40,000 cars.

Picture of Chisinau, Moldova, at night by Samoil Alexei Alexandra reproduced under CCL.

Monday 4th January 2016

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