OREANDA-NEWS. October 20, 2014. A contribution agreement on Moldova’s participation in the Eastern Europe Energy Efficiency and Environment Partnership Fund was signed in Chisinau.

The fund is aimed at providing financial support for enhancing energy efficiency in the countries of EU’s Eastern Partnership. “With a 1 million-euro contribution, which is to be paid in instalments during five years, Moldova will have opportunity to attract grants worth 20 million euros to modernise the thermal power systems from Chisinau and Balti and renew public transport in the capital”, Economics Minister, Deputy Prime Minister Andrian Candu said.

The money will be also used to increase energy efficiency of buildings. “Two projects on restructuring heating systems in Chisinau are under way. We have to sign an agreement on modernising these systems in Balti”, Candu said.

Fund’s director Anders Lund said fund had been launched in Ukraine in 2009, following an initiative by the Swedish government. Among its sponsors, there are the European Bank for Reconstruction and Development (EBRD), Denmark, EU, Latvia, Norway and other countries. “Currently, Moldova becomes a contributor to this fund and will be part of its executive council”, Lund added.

He said “Moldova proved its interest in increasing energy efficiency” and that the support, first of all, would be offered to the municipal sector “where the needs are much more urgent.”.

The countries willing to benefit from grants provided by the fund must come with a contribution. Moldova will contribute with 1 million euros, paying in five instalments. The first instalment worth 100,000 euros is to be transferred by early 2015.

Moldova is the country most dependent on imported energy resources from the Commonwealth of Independent States, and the expenses for energy are eight-fold higher in terms of its share in the Gross Domestic Product against the EU countries, according to the EBRD said.

According to the Moldova 2020 Strategy, a quarter of thermal energy is lost in networks. The consumption can be reduced to a half by increasing energy efficiency of buildings.

The EBRD investments in energy efficiency and renewable energy in Moldova have reached 100 million euros.