Public institutions as well as apartment block associations in Chisinau will be able to apply for financing to improve the energy efficiency of buildings thanks to a project implemented by UNDP.
Project manager Nicolae Zaharia, told IPN that the project team together with local authorities will identify the blocks that need thermal insulation, replacement of windows, adjustments to the heating system, etc. These services will be contracted through a financing instrument that doesn't require direct investment from the beneficiaries.
“We're talking about buildings that incur significant energy losses either because of low quality windows or outdated heating systems or damaged walls. These issues will be fixed and the expenses covered by energy services companies (ESCOs) that will have access to the guarantee fund available as part of the project. Investments will be recovered in several years and the blocks will become energy efficient”, said the project manager.
Nicolae Zaharia said that if the maintenance of a building costs X lei, a feasibility study showed that this sum can be reduced by 30-40% by improving the energy efficiency of the building. After the improvements are finalized, the owners continue to pay X lei for some time and the difference goes to the contractor to repay its investment. After the contract expires, the ESCO withdraws and the owners start paying less for heating.
The project manager admitted that the Moldovan market lacked services that would provide technical and financial solutions at the same time. “The ESCO's capacity to obtain a profit as a direct result of the energy efficiency improvements shows an advanced development model, based on performance. Accordingly, everyone wins – the beneficiaries as well as the entrepreneurs”, explained Zaharia. He noted that the main local and national benefits of this project are the creation of a sustainable ESCO industry and a drop in energy imports by halving consumption thanks to energy saving.
The project has a budget of 1.3 million dollars. The money is offered by the Global Environment Fund. UNDP will contributed with 150,000 dollars.
