European Bank provides loan for energy efficiency in Moldovan households

The European Bank for Reconstruction and Development (EBRD) is providing €35m in loans for five years under the under the EBRD Moldovan Residential Energy Efficiency Financing Facility (MoREEFF).

To be provided through credit lines extended to participating commercial banks, the loan is expected to develop energy efficiency in the residential sector.

Pursuant to the agreement, the Moldindconbank will lend €5m to private individuals and condominium associations.

Moldindconbank president Svetlana Banari commented, "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."

EBRD financial institutions director Henry Russell further added, "We have promoted instruments which are aimed at clients implementing energy saving projects, both private companies and individuals."

Minister of Economy Valeriu Lazar speaking at the MoREEFF launch said that the country is focused on energy efficiency through its energy strategy.

"The implementation of such projects will help us achieve the pan-European sustainable development goals," he added.

The reduction of energy consumption and CO2 emissions will lower the energy bills of Moldovan households and make them environmentally responsible consumers."

Additionally, the Sweden and the European Union have also extended €11m in grants along with technical cooperation for residential sector investments.

The energy efficiency strategy for home improvements include energy efficient windows, walls, roofs and floors insulation and gas boilers, biomass-fuelled room heaters, solar water systems, heat pump systems and rooftop solar panels.

Under MoREEFF, house owners, association of home owners, ESCO, developer or facility management company will receive a grant of 20- 35% of the loan amount, towards the completed project cost.