The EBRD has launched a €35 million financing facility in Moldova to improve energy efficiency in the residential sector. Over the next five years, loans under the EBRD Moldovan Residential Energy Efficiency Financing Facility (MoREEFF) will be provided through credit lines extended to commercial banks participating in the programme.
The facility is now already in use. Under MoREEFF, Moldindconbank has signed a €5 million transaction for on-lending to private individuals and condominium associations. “We are happy to partner the implementation of MoREEFF in Moldova. Thanks to the facility, our clients are able to make an excellent investment while they cut their energy expenses and receive an investment incentive upon project completion.” said Svetlana Banari, President of Moldindconbank.
Procredit Bank is planning to join the facility to offer the MoREEFF loans in the near future. Other banks have also expressed interest in the financing programme and are said to join at later stages.
“Working with the Moldovan banks is a high priority for the EBRD. We have promoted instruments which are aimed at clients implementing energy saving projects, both private companies and individuals. Our goal is to stimulate healthy competition amongst the Moldovan commercial banks and a sound development of the whole banking sector in the Republic of Moldova”, said Henry Russell, Director, Financial Institutions at the EBRD.
“Energy efficiency is one of the main targets of our country’s energy strategy,” explained Minister of Economy Valeriu Lazar at the official launch of MoREEFF. “The implementation of such projects will help us achieve the pan-European sustainable development goals. The reduction of energy consumption and CO2 emissions will lower the energy bills of Moldovan households and make them environmentally responsible consumers. These projects will also help improve the quality of life of residents”.
Also present at the launch was Marcel Raducan, Minister at the Ministry of Regional Development and Construction, who commented: “Our successful cooperation with the EBRD on the development of MoREEFF, as well as their support in adopting of new legislation on energy efficiency in buildings, is a significant step to develop a more sustainable environment for all residents, a better quality of life and a secure future for our children.”
“Improvements in energy efficiency are at the core of EBRD’s strategy for Moldova” said Julia Otto, Head of the EBRD’s Resident Office in Moldova. “It is crucial to improve energy efficiency and lower energy consumption in the country and we work closely with Moldovan Government and Donors to tackle that. In doing so the EBRD builds on the successful implementations of the Moldova Sustainable Energy Financing Facility for the commercial sector and on the experience gained from Residential Energy Efficiency Frameworks in other countries.
In addition to the EBRD credit facility, more than €11 million has been earmarked by Sweden and the European Union for grant support and technical cooperation to stimulate these residential sector investments.
Ingrid Tersman, the Swedish Ambassador to Moldova, commented: “Sweden fully supports MoREEFF and all sustainable energy initiatives in Moldova. In Sweden we have a wide experience in the field of sustainable living and the most efficient use of energy resources. We are glad that the government of Moldova and the EBRD are providing us with this opportunity to support Moldovan residents in their efforts to improve their homes and their quality of life.”
Under MoREEFF, energy efficiency home improvements financed will include the installation of energy efficient windows, the insulation of walls, roofs and floors, and the use of gas boilers, biomass-fuelled room heaters, solar water systems, heat pump systems and rooftop solar panels.
Any Moldovan house owner or association of home owners, ESCO, developer or facility management company that takes a loan under MoREEFF is entitled to receive a grant of 20 per cent, 30 per cent or even up to 35 per cent of the loan amount, towards the cost of the energy saving project, once it has been completed and subject to MoREEFF’s terms and conditions.
Further information about MoREEFF can be found at http://moreeff.info.