The Ministry of Energy of the Republic of Moldova and the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group, have signed a Grant Agreement providing up to USD 1.7 million in grant financing for the preparation of a project to construct new high-efficiency heat and power generation capacities for S.A. “Termoelectrica”.

The grant is provided through the Grant Facility for Project Preparation (GFPP) and will finance the preparation of technical documentation, specialized studies, environmental and social assessments, as well as other activities required to prepare the strategic investment included in the “Resilient, Efficient, Secure Combined Heat and Power Program (RESHAPE-Moldova)”.

The project is based on the findings of the feasibility study developed under the Second District Heating Efficiency Improvement Project (PIESACET-2), financed by the World Bank. The study recommends the development of a new high-efficiency combined-cycle cogeneration plant, which will contribute to the modernization of Chisinau’s energy infrastructure and strengthen the energy security of the Republic of Moldova.

The construction of a new high-efficiency cogeneration plant with an electricity generation capacity of approximately 250 MW and a thermal capacity of approximately 180 MW will enable the simultaneous generation of electricity and heat with lower fuel consumption compared to conventional technologies. This will help reduce energy generation costs and ensure more efficient use of energy resources.

The new investment will create the conditions for the gradual replacement of outdated generation capacities, improving energy efficiency, reducing fuel consumption and cutting greenhouse gas emissions. At the same time, the project will facilitate the integration of renewable energy sources and contribute to the development of a more resilient and flexible energy system.

The grant will be implemented through the Consolidated Unit for the Implementation and Monitoring of Projects in the Energy Sector (CUIPE), in cooperation with S.A. “Termoelectrica” and the World Bank.

The signing of this agreement represents an important step in preparing one of the most significant investments in the energy sector of the Republic of Moldova. It will contribute to the modernization of the district heating system, strengthen energy security, and advance the country’s energy transition and decarbonization objectives.

The grant is non-repayable and does not create any repayment obligations for the Republic of Moldova. The funds will be used to prepare the investment project, with the financed activities scheduled for implementation by the end of 2027.