The EBRD is helping Moldovan households to reduce energy consumption and cut bills with a new €35 million Moldovan Residential Energy Efficiency Financing Facility (MoREEFF), launched today. This is a new framework developed to encourage households to make better use of the country’s energy resources and to reduce their household energy bills.
The first credit line extended under MoREEFF is a €3 million loan to BCR Chisinau to finance residential energy efficiency projects in Moldova. The facility will be used for on-lending purposes to residential customers to support the rational utilisation of energy.
BCR Chisinau is one of the first foreign capital owned banks in Moldova, a subsidiary of BCR Romania, which is a member of Erste Group from Austria. BCR Chisinau has been one of the three Moldovan banks which have participated in the EBRD Energy Efficiency Financing Facility (MoSEFF) for private companies.
BCR Chisinau will on-lend further to individuals, households, groups of residents and energy service companies to help the Moldovan population save money and energy by investing in energy efficient appliances, such as thermal insulation of walls, roofs, floors, installation of boilers, heat pumps and other energy saving measures.
Funds from the EBRD’s MoREEFF will also be made available to other local banks.
The framework is complemented by grant funding by the Swedish International Development Cooperation (SIDA) worth €2.3 million to support project development as well as an EU NIF (Neighbourhood Investment Facility) grant of €5 million.
The EBRD has engaged consultants under the framework to increase public awareness and provide households with technical advice on energy saving investments. This will help home owners make the transition from underperforming, low quality equipment and materials, towards investing in better performing, more efficient products that will deliver greater benefits in the long-term.
Moldova remains one of the most energy-intensive countries in the region in terms of energy consumption as a proportion of GDP, with high dependence on imports of primary energy sources. This places a substantial burden on the Moldovan economy and environment. Energy efficiency and renewable energy financing initiatives are therefore one of the main ways of encouraging more sustainable energy use.
“The loan illustrates the importance the Bank places on more efficient energy utilisation for households that can help to reduce waste, so that even with rising energy prices, homes cost far less to heat. This is another step towards further improving the environment and people’s living standards in Moldova. We are also happy to work again with our partner bank, BCR Chisinau, on this new residential energy efficiency loan that follows the successful implementation of the earlier industrial Energy Efficiency facility signed in February 2011”, said Henry Russell, EBRD FI Director for Western Balkans, Croatia, Belarus and Moldova.
“BCR Chisinau involvement in residential energy efficiency financing in cooperation with the EBRD will contribute to the Moldovan economic development and will ensure households receive financial support to reduce energy costs and increase personal welfare”, said Sorin Andrei, CEO of BCR Chisinau.
The EBRD, one of the largest investors in Moldova, has to date signed a total of 85 investment projects in the country covering energy, transport, agribusiness, general industry and banking for a total commitment of almost €636 million.