Moldova invests $100M in homes: Energy efficiency fund launched
In a strategic move to tackle energy reliance and improve residential efficiency, Moldova has launched a $100 million fund dedicated to retrofitting homes and reducing energy consumption.
This multi-pronged initiative, targeting both individual houses and apartment buildings, seeks to drive tangible results through direct investments and measurable goals.
Focus on homes, tangible impact:
The fund, fueled by contributions from energy companies and bolstered by development partners, will directly cover up to 70% of energy efficiency upgrades and renewable energy projects in Moldovan homes. This translates to a targeted annual renovation of 155,000 square metres in apartment buildings and 56,000 square metres in individual houses.
"Over 70% of our apartment buildings fall below acceptable energy efficiency standards," acknowledged Victor Parlicov, Moldova's Minister of Energy. "Our goal is not just to address the symptoms, but to cure the disease. By directly improving home efficiency through insulation, lighting upgrades, and other measures, we aim to achieve a 45% reduction in energy consumption, significantly alleviating the burden on both residents and the national grid."
Hitting the ground running in 2024:
To jumpstart the program, 25 homeowners' associations were shortlisted through a rigorous selection process. Their buildings will undergo comprehensive energy audits to identify the most impactful renovation measures.
Beyond cost savings: a multifaceted impact:
The fund's benefits extend far beyond mere energy cost reduction. It is expected to:
- Increase energy security: Reduced reliance on imported fuels will enhance Moldova's energy independence and potentially lower costs for consumers.
- Improve living standards: Residents in renovated homes will experience increased thermal comfort and a more pleasant living environment.
- Boost property values: Energy-efficient homes often command higher values, benefiting homeowners.
- Stimulate economic growth: Increased construction and renovation activity will create new jobs and boost various sectors.
- Curb carbon emissions: Reduced energy consumption directly translates to lower greenhouse gas emissions, contributing to environmental protection.
- Improve public health: Warmer, more comfortable homes can lead to better health outcomes for residents.
Shared responsibility, collective progress:
Fifty-five energy companies, including electricity and gas distributors, fuel importers, and thermal energy providers, will contribute to the program's success. The financial burden on consumers is expected to be minimal, with the energy efficiency obligations translating to roughly 1 cent per kWh of electricity, 5 cents per cubic metre of natural gas, and proportionate increases for other fuels.
Moldova's $100 million residential energy efficiency fund marks a significant step towards a more sustainable and secure energy future for the nation. By focusing on homes and empowering citizens to actively participate in the national energy transition, the program paves the way for lower costs, improved living standards, and a cleaner environment.
Translation by Iurie Tataru
