The Republic of Moldova will be contracting a €120 million preferential loan over a period of 5 years from the Agence Française de Développement, alongside a €5 million grant from the European Union. The funds will be invested in several projects aimed at implementing energy sector reforms.
Today, the Ministry of Energy, Finance, Environment, Labor, and Social Protection signed a Memorandum of Understanding with the Agence Française de Développement for the reform of the energy sector. The memorandum includes various measures to improve energy efficiency, particularly in public buildings, stated the Minister of Energy, Victor Parlicov.
“Our energy priorities focus on accelerated decarbonization, which primarily involves investing in energy efficiency of buildings, transitioning to electric transportation, and improving the capacity to integrate renewable energy into the grid. With the funding we will receive from the Agence Française de Développement, we will strive to invest in these priorities,” said Victor Parlicov.
Energy is a strategic topic for the Republic of Moldova, and France is providing support on multiple fronts to enhance the country’s energy independence, according to Philippe Orliange, the Executive Director of the Agence Française de Développement.
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“France is providing multifaceted assistance to the energy sector by delivering 29 high-capacity generators for Moldovan hospitals, through investment projects, and by offering concrete support for the ongoing reforms. Despite significant progress in recent months, there is still much to be done to improve energy resilience and security and to align with European norms and standards,” highlighted Philippe Orliange.
According to the Ministry of Energy, €40 million is expected to be disbursed from the €120 million loan for this year. The loan mechanism is contingent upon meeting certain conditions, including cooperation in the field of renewable energy. The Republic of Moldova aims to reach a 30% share of electricity from renewable sources by 2030.
These financial resources will contribute to the modernization of the energy sector, the implementation of renewable energy projects, and the improvement of energy efficiency across various sectors. They will help reduce the country’s dependence on fossil fuels, promote sustainable development, and align with international commitments in combating climate change.
The Republic of Moldova continues to strengthen its energy infrastructure, enhance energy security, and pursue a greener and more sustainable future. The support received from the Agence Française de Développement and the European Union underscores the commitment to sustainable energy development and the overall progress of the country.