€143.5 million EBRD loan will make heating the Moldovan capital greener and more efficient, with EU and E5P support

• EBRD lends €143.5 million to Moldova to modernise its capital’s ageing heating system
• Co-financiers EIB, EU and E5P contribute €143.5 million, €24.5 million and €15 million
• Chisinau’s net carbon emissions are expected to decrease by 40,000 tonnes annually

The EBRD will lend €143.5 million to Moldova to modernise the biggest district heating supplier in its capital, Chisinau, enhancing efficiency at Termoelectrica JSC by introducing billing for individual apartments and reducing carbon dioxide emissions by 40,000 annually.

The EBRD loan will be matched by a parallel €143.5 million loan from the European Investment Bank as well as investment grants of €24.5 million from the European Union’s Neighbourhood Investment Programme and €15 million from the Eastern Europe Energy Efficiency and Environment Programme (E5P). The EU and Sweden are the largest donors to E5P, a multi-donor fund pooling financial contributions of €437 million of which close to €70 million have been allocated to Moldova.

“This is a key project to enhance Moldova’s energy security,” said Mark Bowman, EBRD Vice President for Policy and Partnerships, at the signing.

Victor Parlicov, Moldova’s Energy Minister, said: “Investing in district heating not only enhances energy efficiency but also improves the quality of life for nearly 400,000 residents of Chisinau, giving customers greater control over their heating systems through apartment-level, consumption-based billing. We are proud to collaborate with our partners to deliver this important initiative, which aligns with our broader goals of transitioning to cleaner energy sources and supporting the country’s green future.”

“The EU has adopted a Growth Plan for the Republic of Moldova worth €1.8 billion for the period 2025-2027.  Focus is placed on the integration of Moldova into the EU energy market as it moves towards a decarbonised economy,” said Jānis Mažeiks, Ambassador of the European Union to the Republic of Moldova.

“Sweden is one of the largest bilateral donors to Moldova. For the Termoelectrica project, we provide a €15 million grant through E5P. We are delighted to support positive transformations in Moldova, a close partner and friend of ours,” said Swedish Ambassador to Moldova Katarina Fried.

A generation ago, Moldova inherited an ageing district heating system. Customers have increasingly shown their dissatisfaction by installing private gas boilers.

Moving to a “horizontal” system where apartments are billed individually based on consumption in 1,600 buildings around the city is key to the efficiency gains of this project. The project, benefitting 400,000 residents of Chisinau, prepares the city’s district heating system for use of renewable and waste heat sources as it phases out fossil fuel-based heat generation.

The project will support Moldova’s efforts to decarbonise its economy in line with the Paris Agreement and to achieving the Sustainable Development Goals. Chisinau joined the flagship EBRD Green Cities urban sustainability programme in 2018; this is a follow-on investment under its Green City Action Plan.

As well as green benefits, a tailored Corporate Development Programme will foster Termoelectrica’s corporate governance, supporting EU candidate Moldova’s compliance with the EU legislation.

The EBRD is a major institutional investor in Moldova. To date, it has invested nearly €2.5 billion in 180 projects in the country.