More than 100 representatives of local public authorities were familiarized with the financing mechanisms of the Eastern European Partnership Fund for Energy Efficiency and Environment (E5P) and the Nordic Environment Finance Corporation (NEFCO), during a public event organized by the Ministry of Energy in partnership with the two institutions.

The initiative aims to inform and develop dialog on sources of financing for sustainable energy and energy efficiency projects in the Republic of Moldova.

"The funding opportunities presented today come to demonstrate that European integration is not an abstract statement, but a process with an impact on every citizen of the Republic of Moldova. We have access to European funding that will help reduce energy costs for public institutions. In our turn, we plan to launch the Residential Energy Efficiency Fund and to reform the Energy Efficiency Agency in order to provide public authorities and every household with additional tools to improve energy efficiency," said Energy Minister Victor Parlicov.

In the case of Nefco, funding under the Energy Saving Credit (ESC) facility can be used for energy efficiency renovation of public buildings as well as for the modernization of street lighting. Eligible measures may include thermal renovation of the building envelope, replacement of doors and windows with energy-efficient alternatives, installation of individual thermal substations, modernization of internal heating systems, as well as replacement of fluorescent and/or mercury lighting with LEDs.

Since 2010, Nefco has financed over 80 projects through the CES facility, two of which have been implemented so far in Moldova. Together with E5P, Nefco has completed 34 energy efficiency projects in Eastern Europe.

The maximum loan amount under the facility is EUR 500,000, equivalent in RON. Nefco can finance up to 90% of the project costs. The repayment period of the investment is up to 5 years, the loan is granted in lei with an interest rate of 3%
The objective of the E5P Fund in Moldova is to complement international loans with grants to support energy efficiency and environmental projects that result in significant energy savings, reduction of CO2 and other greenhouse gas (GHG) emissions.

The E5P Fund for Moldova amounts to over €50 million and includes a €1 million contribution from Moldova. The European Union is the largest overall contributor with €28.95 million. Other donors include the Czech Republic, Denmark, Estonia, Estonia, Finland, Germany, Lithuania, Norway, Poland, Romania, the Slovak Republic, the Slovak Republic, and Sweden. The E5P Fund in Moldova helps to improve energy efficiency, contributing to energy security, economic competitiveness and policy dialog, while having a positive impact on the environment. The average grant-to-investment ratio is 1 to 5 and the average grant-to-loan ratio is 1 to 3.