European partners support Moldova’s families in energy efficiency efforts

A technical cooperation project of value €25.3 million has been commissioned by the German Government and co-funded by the European Union and Norway. Denmark has also committed to supporting the initiative. The project aims at accelerating the energy transition in Moldova with the specific objective of decreasing dependency on energy imports and creating financial benefits for Moldovan households via enhanced energy efficiency and the use of renewable energy. The funds provided by the European donors are made available through the project “Energy Efficiency and Renewable Energies in the Republic of Moldova (E4M)”.

The total budget includes direct grant funding amounting to €10.5 million for the implementation of energy efficiency measures via the Moldovan Residential Energy Efficiency Fund (MREEF) and the EcoVoucher program. It aims at significantly reducing energy consumption and lowering monthly utility bills for vulnerable families while also improving living conditions for citizens.

The grants channeled through E4M will be managed directly by the National Center for Sustainable Energy (CNED).

“In the Republic of Moldova, the average energy consumption per square meter is twice as high as in the European Union countries. Energy efficiency is a key element for the sustainable development of our country. It is essential to offer financial solutions that support the population’s access to modern and efficient energy conservation technologies. Through strategic partnerships and innovative financial products, we can encourage the adoption of these solutions and contribute to reducing energy losses in homes,” stated Carolina Novac, State Secretary of the Ministry of Energy.

“This is the first time that the population of the Republic of Moldova has access to government financing programs. The way they have been developed and are operating has attracted the attention of development partners, who have decided to financially support them in order to support the government’s efforts to facilitate the transition to a more energy-efficient residential sector. Our goal is to achieve savings on energy bills and reduce energy poverty of the population,” mentioned Ion Muntean, Director of CNED.

The European Union has allocated 3 million euros, specifically for energy refurbishments of energy-vulnerable rural single-family houses.

“Vulnerable families in rural areas will receive services in the form of energy audits and technical evaluation of the building, followed by large subsidies for energy refurbishment work on their homes. Well-insulated homes mean fewer compromises between warmth and affordability, and this program ensures that these renovations reach those who need them most,” stated Jānis Mažeiks, Ambassador of the European Union to the Republic of Moldova.

The German Federal Ministry for Economic Cooperation and Development has donated 7 million euros to support the initiative.

“Reducing energy consumption in private households through energy efficiency measures directly benefits Moldovan families across the country ensuring lower spending on energy in a sustainable and permanent way,” emphasised Margret Uebber, Ambassador Extraordinary and Plenipotentiary of Germany to the Republic of Moldova.

Residents of small apartment buildings can also access thermal rehabilitation and energy efficiency measures, through a grant from Norway, which is part of a total contribution of €12.6 million to the E4M initiative. Additionally, part of the funding will support the EcoVoucher program, helping vulnerable households replace outdated household appliances with energy-efficient equipment at a reduced cost.

“By improving the energy performance of apartment blocks under the REEF initiative and facilitating access to modern and efficient household appliances through the EcoVoucher program, we help vulnerable families manage their energy consumption in a practical way,” said Kamilla H. Kolshus, Chargé d’affaires, Norwegian Embassy Office in Chișinău.

Denmark has allocated EUR 2,7 million to the project. Via Danish support, the REEF will be extended beyond energetic renovation of existing buildings but also provide financial support for house builders. 

“With the Russian energy blackmail this winter, vulnerable families in Moldova have been targeted. Denmark stands with Moldova in its effort to support these families. By ensuring better energy efficiency, we can help them find more affordable solutions that enhance their quality of life and help build a sustainable future,” stated Søren Jensen, Ambassador Extraordinary and Plenipotentiary of Denmark to Moldova.

“I am proud of how rapidly you advance in energy efficiency, turning theory into reality and together with our partners, we are inspired by the Moldovan people’s determination to build a resilient tomorrow,” remarked Claudia Hermes, Country Director of GIZ Moldova.

The implementation of activities funded by these allocations has already begun at the start of this year.

This multi-donor project complements the €310 million energy support package announced by the EU on 4 February 2025.