Energy efficiency fund in residential sector to have budget of at least 723 million lei in next three years

Chisinau, Dec. 27 /MOLDPRES/- Energy efficiency fund in residential sector (FEERM) will have a budget of at least 723 million lei in the next three years, money to be collected from the energy companies, according to a decision approved today by the government on the energy efficiency obligation program. It will enter into force in 2024.

In addition to the sums collected from economic agents, the FEERM's annual budget will be doubled from the contributions of development partners and international financial organizations. FEERM will be managed by the National Center for Sustainable Energy, CNED, the successor of the Agency for Energy Efficiency.

FEERM will provide non-refundable financing of up to 70% of the total expenses necessary for the implementation of energy efficiency measures and the use of renewable energy sources in the residential sector, the rest to be provided by the contribution of tenants. The Fund's objective is to annually renovate a heated area of at least 155 thousand m2 in residential blocks and 56 thousand m2 in individual houses and, thus, reduce the consumption of energy resources by at least 30% of the value of consumption under standard conditions in the buildings of the residential sector beneficiaries of financing programs.

"More than 70% of residential blocks in the Republic of Moldova have a low level of energy efficiency, and the population pays for energy losses in bills. Thus, instead of compensations for energy, a necessary anti-crisis measure, we propose to reduce consumption by making homes more energy efficient. Calculations show that average renovation of buildings - thermal insulation of external walls, roof, basement, replacement of energy-inefficient windows and doors with efficient ones, regulation of thermal energy consumption and improvement of the lighting system - can generate savings of about 45% of energy consumed", Minister of Energy Victor Parlicov said.

75% of FEERM resources will be dedicated to the modernization of housing blocks. 

55 enterprises of the energy sector will contribute to the energy efficiency obligation program for 2024, including two operators of electricity distribution systems, 19 operators of natural gas distribution systems, 26 importers of petroleum products (petrol, diesel and liquefied gas) and eight suppliers of thermal energy for heating and/or domestic hot water preparation, and/or cooling.