EU4Energy: Moldovan Residential Energy Efficiency Financing Facility (MoREEFF)

Project duration

2011-2017

Budget

€4.7 million

Project Website

MoREEFF programme, Moldova
MoREEFF programme, Moldova

Brief Description

The Moldova Sustainable Energy Efficiency Finance Facility (MoSEFF), co-funded by the EU, has supported energy efficiency and renewable energy investments of private companies. This was made possible thanks to support in preparing technically feasible and bankable projects, support to lenders in the appraisal of projects, and providing competitive credit lines by the EBRD.

Objectives

Why is this needed?

The Republic of Moldova is highly dependent on energy imports with some 30% of the import budget spent on energy resources. In addition, energy losses are extremely high due to obsolete energy infrastructure, outdated and inefficient equipment, and a lack of monitoring and control systems.  

SMEs, agribusinesses and commercial services often struggle to finance sustainable energy investments due to difficult credit conditions. MoSEFF addresses this issue by supporting investment in sustainable energy projects.

Actions in brief

How can the project help?

MoSEFF was launched in 2011 and financed 177 projects focusing, inter alia, on the refurbishment of buildings to higher energy-efficiency standards, upgrading industrial equipment and the installation of renewable energy equipment. What makes MoSEFF unique is that it combines a credit line to local financial institutions such as Moldindconbank, Mobiasbanca, Procreditbank and others with a technical assistance and incentive programme that addresses barriers to investment. Financed by the European Union, technical assistance also promoted energy efficiency awareness throughout the country.

What results have been achieved?

Approximately seven out every ten MoSEFF loans were provided to the agribusiness and manufacturing sectors. This reflects the importance of these sectors to the Moldovan economy. Investments in agriculture have helped to replace equipment, refurbish animal production buildings and introduce biomass boilers for greenhouse heating. Projects in the manufacturing sector have supported the replacement of equipment, switching of boiler fuel, and the installation of solar PV panels. More than half of MoSEFF investments were made outside of the capital.

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