The EU and UNDP contributed to overcoming the energy crisis and liberalising the energy market in Moldova
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The European Union and UNP helped to overcome the energy crisis, to create support mechanisms for the energy vulnerable population and programs to reduce energy consumption in households, to reform institutions in the sector and has created the premises for the liberalisation and integration of the energy market of the Republic of Moldova into the European one. These are the results of the “Addressing the impacts of the energy crisis in the Republic of Moldova” Programme, funded by the European Union and implemented by UNDP during 2022-2024.
With a total budget of EUR 13 million, the Programme has been instrumental in overcoming the energy crisis through advice and the creation of the Energy Vulnerability Reduction Fund and the mobilisation of resources for it. As a result, more than 800 thousand families received compensation in their energy bill in the years 2022-2024, when international energy prices reached historic highs.
With the support of the Programme, three strategic documents – the National Integrated Energy and Climate Plan, the sectoral Strategy for the renovation of the national housing stock for 2025-2030 and the National programme on strengthening and developing the national solid biofuels sector in the long term, as well as 34 legislative acts were developed.
“Moldova has successfully overcome the energy crisis and used it as an opportunity to launch ambitious reforms in the energy sector. But, all this would not have been possible without the major support of the international community, and the program ‘Addressing the impacts of the energy crisis in the Republic of Moldova’ played a key role in these transformation processes,” said Victor Parlicov, Minister of Energy.
The final results of the programme were presented on 1 August 2024 at a public event.
With European Union funding, five district hospitals in Florești, Nisporeni, Ștefan Vodă, Cahul and Călărași have been equipped with photovoltaic panels with a total capacity of 600 kW. The panels on the five hospitals will produce 780 MWh of green electricity per year, reduce hospital costs by more than 20 million lei per year and cut CO2 emissions by 437 tons annually.
“Funded by the European Union and implemented by UNDP, this programme has been instrumental in navigating and overcoming the challenges posed by the recent energy crisis.The journey we embarked upon was not an easy one. The energy crisis brought with it unprecedented challenges, but it also provided a unique opportunity to launch ambitious reforms in the energy sector. Now we can confidently affirm that this opportunity has been used fully and the energy sector accelerated its transformation for the good of people,” said Daniela Gasparikova, UNDP Resident Representative to the Republic of Moldova.
“The nation that possesses green sustainable energy is not only economically and energetically secure but also enjoys a high level of sovereignty. This is why the EU intervened during the energy crisis to support Moldova in enhancing its energy security. The Government’s dedication, accompanied by the efficacy of UNDP, played a crucial role in achieving this milestone,” said Solomon Ioannou, Programme Manager at the Delegation of the European Union to the Republic of Moldova.
The programme has implemented a number of pilot projects that have contributed to reducing energy consumption in households, to be taken up by the National Center for Sustainable Energy (NCSE) and scaled up nationwide. These include the “Green Home” programme, through which 219 energy-vulnerable households, including 74 family-type children’s homes, have benefited from energy efficiency measures or the installation of photovoltaic panels. Under the “Rabla for household appliances” programme, 31,838 households have benefited from vouchers for LED bulbs. 7,246 households have replaced their old refrigerator, washing machine, or electric stove with new, energy-efficient equipment.
Also, in 4 blocks of flats in Chișinău, individual thermal points were installed and heat distribution systems were changed to horizontal ones. Thanks to these changes, the thermal agent will be centrally heated and evenly distributed in all apartments for heating, allowing individual heat regulation and metering in each apartment. Thus 445 families will pay up to 30% less for heat.
“In our building, the residents intervened in the heat distribution system and from the 9th to the 5th floor it was warm during winter, but it was cold on the lower floors. Now, it’s warm in the apartment, and I can make one room warmer and another cooler if I’m not using it. Now we have hot water, and my pension money is enough to cover the bills. I am grateful to the European Union and I want you to know that people in Chișinău are also looking forward to having horizontal heat distribution systems,” says Andrei Mazur.
With the financial support of the European Union, also within the Programme were supported energy audits in 25 blocks of flats, which will be retrofitted according to the model tested by the UNDP and the NCSE.
The Programme has also equipped five educational institutions across the country with energy studies equipment. Energy equipment was donated to the Technical University of Moldova, Chișinău Technological College, the Soroca Agricultural Technical College, the Bălți Polytechnic College and the Chișinău Centre of Excellence in Construction.
To support good understanding of changes in the energy market, the Programme organized trainings and study visits for journalists, provided media grants to promote the energy transition, and organized courses and summer camps for students.