The European Union enhances the energy security of the Republic of Moldova

The challenges posed by the Russian invasion of Ukraine have shown the European Union’s unwavering solidarity with Moldova. Energy crisis is not an exception. The EU and its member states have offered heat to the citizens of the Republic of Moldova for winter.

• EU and its Member States have provided €150 million of budget support for managing current energy crisis
• €300 million provided by the EBRD for the acquisition of strategic gas reserves
• 600 thousand consumers benefit from energy bill compensation thanks to EU financial assistance to Moldova
• The Iasi-Ungheni gas pipeline, an alternative source of energy, was first used in December last year

Budget support to overcome the energy crisis

Moldova has received budget support of more than€150 million for the purpose of energy crisis management and helping vulnerable groups of society. Ursula von der Leyen announced, during her visit to Chisinau, that Republic of Moldova will receive additional financial assistance worth €250 million, thus enhancing the energy security of the country. Of these, €100 million are grants, another €100 million will be provided in the form of loans, and €50 million represent budget support.

Compensations for energy consumption

More than 600 thousand households benefit from energy bill compensation thanks to the financial assistance of the European Union. The EU has contributed to the development of the compensatii.gov.md platform and the support that consumers receive is covered by the EU budget provided to the Republic of Moldova. Due to the European Union and United Nations Development Programme, more than 300 thousand consumers know and apply measures to reduce energy consumption.

Energy efficiency projects funded by the EU

Moldova aligns with the EU’s strategy to boost the energy security of the country. Last year alone, more than €75 million were invested in energy efficiency initiatives, renewable energy projects were funded, schools were renovated, modern energy supply equipment projects for residential blocks and public institutions were launched.  The EU and its member states funded the renovation of eight schools from Chișinău, Strășeni, Șoldănești, Basarabeasca, Leova, Ungheni, Sângerei  and Bălți. More than 5000 children and adults have access to modern energy efficient institutions. The project worth €12.7 million was implemented by GIZ between 2018 and 2021.

Modern Systems

By 2023, five blocks of flats across the country will be equipped with efficient heating systems and three hospitals will benefit from photovoltaic panels. The Horizontal heat distribution systems are much more efficient than vertical ones. They allow the installation of individual heating and hot water meters in each apartment, thus the temperature and, respectively, the amount of the bill being individually regulated. The works funded by the European Union are carried out within “Addressing the impacts of the energy crisis in the Republic of Moldova” programme and implemented by the United Nations Development Programme. The programme aims to alleviate the impact of energy poverty, at a time when more than 60% of Moldova’s population spends more than 10% of their income on energy.

Public institutions ready for the cold season

More than 200 operators of solid biofuel boilers installed in schools and kindergartens from EU funds were trained in the proper management of biomass boilers. The purpose of the training was to update operators’ knowledge of the public institutions that have solid biomass boilers. Moreover, 100 biomass boilers in public institutions were inspected and verified to be ready for winter by the experts of the “Addressing the impacts of the energy crisis in the Republic of Moldova” programme funded by the EU and implemented by UNDP.

Alternative Sources for Moldova’s energy security

The Iasi-Ungheni pipeline is a reliable source of diversification of gas supply, thus reducing Moldova’s gas distribution monopoly. Last December, the Iasi-Ungheni-Chisinau pipeline was used for the first time to deliver the gas stored by Moldova in Romania.

In 2022, The European Bank for Reconstruction and Development lent Moldova €300 million to boost energy security through strategic gas acquisitions.

Investments in alternative energy sources and energy efficiency projects continue. Together, we can contribute to energy independence and sustainable consumption of energy resources.