CNED guarantees 10 million lei for apartment building energy renovations
Homeowners' associations will find it easier to secure loans for energy renovations of apartment buildings thanks to a new mechanism approved by the government. Under this initiative, the National Center for Sustainable Energy (CNED) will guarantee up to 90% of loans, with a maximum amount of 10 million lei and an interest rate capped at 5% per year.
The upcoming instrument will enhance the non-reimbursable financing provided through the Energy Efficiency Fund for the residential sector. It offers two types of support: loan guarantees and partial interest compensation.
Loans will be available in lei for up to seven years, with an effective interest rate capped at 5% per annum. The one-time granting fee will not exceed 0.5% of the loan amount, while the annual guarantee fee is estimated at 1% to 1.5% of the guaranteed loan balance.
"As many condominium owners’ associations may find the required own contribution for energy renovation projects to be a barrier, we’re providing financial guarantees and interest compensation on loans. This will serve as a practical tool, enabling associations to more easily secure the necessary financing to undertake larger-scale energy renovation projects," stated Ion Muntean, director of CNED, during a workshop held in Chisinau.
The State Secretary of the Ministry of Energy, Vitalie Mîța, emphasized the importance of accelerating investments in the renovation of apartment buildings. He noted that much of the housing stock was built during the Soviet era under lower energy-efficiency standards, as shown by high energy consumption and resulting bills for residents.
To date, eight contracts have been signed for energy renovation projects in apartment buildings located in Chișinău, Hâncești, Ialoveni, Bălți, and Ceadir-Lunga. Additionally, we have conducted 127 energy audits for apartment buildings nationwide. Currently, 103 condominium owners' associations are engaged in the process, with 18 projects approved for financing.
The renovation works include insulating exterior walls, replacing windows and doors in common areas, modernizing heating systems, updating internal water and heat distribution networks, and installing renewable energy systems, such as solar panels.
According to the authorities, these improvements are expected to reduce heat loss by 50–60% and significantly lower tenants' utility bills.
