Moldova launches residential energy efficiency fund

Moldova’s Ministry of Energy announced that an Energy Efficiency Fund for the residential sector will become operational in 2024, with a budget of 723 million lei (145 million euros) from the government’s Energy Efficiency Obligations Programme.

The fund plans to provide non-repayable funding of up to 70 per cent of the total costs required for implementing energy efficiency measures and the utilisation of renewables in the residential sector, with the remainder to be covered by residents.

“Over 70 per cent of residential buildings in the Republic of Moldova have a low level of energy efficiency, and the population pays for energy losses in their bills. Thus, instead of energy compensations, a necessary anti-crisis measure, we propose to reduce consumption through the energy efficiency of homes,” said Victor Parlicov, Moldova’s Minister of Energy. “Calculations show that medium-level renovation of buildings – thermal insulation of exterior walls, roof, basement, replacement of inefficient windows and doors with energy-efficient ones, adjustment of thermal energy consumption, and improvement of the lighting system – can generate savings of about 45 per cent of consumed energy.”

75 per cent of the fund’s resources are to be allocated to the modernisation of residential buildings, with selection criteria based on the level of energy losses, energy vulnerability of consumers, availability of own contributions, etc. For 2024, 25 tenant associations have already been selected through a competition, in which they have implemented the necessary energy efficiency measures in the managed buildings.

The fund will be managed by the National Centre for Sustainable Energy, with its budget expected to be supplemented by development partners, the Moldovan ministry noted in a post on LinkedIn.