The government has approved a draft decision to commence negotiations on the ‘Moldovan Renewable Energy Efficiency Financing Mechanism’ (MEERM) project. The terms of the financing will be established through negotiations with the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group.
The bulk of the funding will be directed towards the energy modernisation of public buildings, including through the integration of renewable energy sources. The project also provides for technical assistance and the development of the institutional capacity of the National Centre for Sustainable Energy (CNED), which will ensure its implementation.
‘We use three times as much energy as other countries to heat one square metre of space, not because energy prices are higher, but because we have not paid sufficient attention to energy efficiency. Experience from other countries that have introduced programmes such as energy service companies shows that investments can pay for themselves within a few years through energy savings, and the funds thus freed up can be reinvested in the refurbishment of other buildings,” said Energy Minister Dorin Junghietu.
A central element of the project is the recycling mechanism: the funds saved by beneficiary organisations on their electricity bills will enable the investment to be recouped and resources to be redirected towards other energy efficiency projects. The money saved on electricity bills will be channelled into a special fund set up by the CNED and reinvested in other similar projects.
The ESCO (Energy Service Company) mechanism is a financing model under which a private company bears the costs of a building’s energy retrofit, whilst the beneficiary repays the work using the savings made on energy bills over a specified period.
It is estimated that the project will achieve energy savings of at least 20 per cent in each modernised building and will help reduce CO₂ emissions by approximately 6,500 tonnes per year. Around 60,000 people will benefit from the improved conditions in the modernised buildings.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
Follow our updates
Have information for the newsroom? Share it with Logos-Press
Comments
0No comments yet. You can start the conversation.
Comments are open to readers with a Logos Press account.
Sign in to comment