November 6, 2024, Chisinau - 4.5 million US dollars will be provided to the Republic of Moldova in the form of a grant, in order to implement the Multi-Donor Trust Fund Program "Growth, Resilience and Opportunities for Well-being in Moldova (M-GROW)" to co-finance the Project "Sustainable Transition to Energy Efficiency in Moldova (STEEM)". A decision in this regard was presented by the Minister of Energy and approved today at the meeting of the Cabinet of Ministers.

The main objective of the project is to improve energy efficiency in public and residential buildings in the Republic of Moldova, as well as to modernize the centralized heat supply system in the Chisinau municipality.

The grant agreement, worth $4.5 million, will finance two main components. The first component, with a budget of $1.5 million, will focus on supporting the National Center for Sustainable Energy (CNED) to conduct energy audits, prepare technical documentation and provide IT equipment necessary for the implementation of a sustainable financing mechanism for energy efficiency.

The second component, with a budget of $3 million, is intended to support the project implementation unit, develop an information system for monitoring energy efficiency and provide professional training to key stakeholders, through workshops and study visits.

The STEEM project also provides for additional investments worth $35 million, through a loan agreement for the energy renovation of 46 schools across the country. The works include thermal insulation, replacement of windows and doors, lighting modernization and the installation of green equipment, such as heat pumps and solar panels, to optimize energy consumption in educational institutions. As a result, approximately 46,000 students, teachers and staff in the modernized schools will benefit from improved thermal comfort, air quality and lighting. At the same time, private companies in the construction and energy services sector will have access to new business opportunities.

The project also includes investments of US$15 million to improve the energy efficiency of the heating system in public buildings, including 11 schools, by installing approximately 350 individual heating points and reconfiguring the heating network from the centralized system. In addition, emergency response measures will be implemented.

The project “Sustainable Transition to Energy Efficiency in Moldova” has a total budget of US$54.5 million, of which US$50 million will be provided as a loan by IBRD and US$4.5 million as a grant, provided by the Multi-Donor Trust Fund “Moldova – Development, Resilience and Opportunities for Well-being (M-GROW)”. The project will run between 2024 and 2029 and will be managed by the Consolidated Unit for the Implementation and Monitoring of Energy Projects (UCIPE).