European Union, partnering with UNDP, provides additional EUR 10 million non-reimbursable support to the Republic of Moldova to overcome the energy crisis
03 June 2022
- Reducing the impact of the energy crisis in the Republic of Moldova and reversing the deepening energy poverty among the country’s vulnerable population are the key objectives of the ambitious new EUR 10 million programme, funded by the European Union, as non-reimbursable support, and implemented by UNDP Moldova. The launch event took place today, 2 June, in the context of the EU Green Week 2022, marked during 30 May – 5 June.
The new programme, entitled “Addressing the impacts of the energy crisis in the Republic of Moldova”, is designed to strengthen both the ability of the Government and the energy sector to review and improve core functioning processes and coordination mechanisms. These measures are essential to support Moldova’s efforts to implement key energy reforms, as well as to strengthen institutional capacity to respond to both the current and potential future energy shocks.
The programme will contribute to providing a standard definition for energy poverty in order to build the mechanisms needed to alleviate the energy burden faced by vulnerable groups in the Republic of Moldova.
“In the Republic of Moldova, energy poverty is a national issue that currently affects most of the Moldovans. Around 60% of households spend more than 10% of their budget on energy. This number is likely to increase next winter, as heating season will restart and global gas prices remain unpredictable. The problem of energy poverty, if left unaddressed, threatens to amplify vulnerability, creating long-term effects on Moldovan society and its economy,” noted Marcel Spatari, Minister of Labour and Social Protection.
The programme will also include a large-scale information campaign that will encourage homeowners to replace old home appliances with more energy-efficient models. The campaign will be complemented by the testing of targeted energy-efficient solutions and renewable technologies that can be used in energy-poor households. In addition, several blocks of flats will be equipped with horizontal heating distribution systems, and photovoltaic panel systems will be installed in at least three medical institutions, which will contribute to reducing energy costs.
“The new programme launched today demonstrates the European Union’s strong commitment to support the people of the Republic of Moldova to overcome the energy challenges. This ambitious programme will contribute to the energy security and energy independence of the Republic of Moldova. It will do so by increasing the capacity of the Government, by investing in renewable energy projects and by increasing awareness of the population about energy efficiency and its benefits. It will also have a positive impact on the environment, through the implemented energy efficiency measures,” stated Jānis Mažeiks, Ambassador of the European Union to the Republic of Moldova.
Furthermore, the programme envisages support for the transposition of the EU Third Energy Package into both primary and secondary legislation, as well as a series of Directives and Regulations of “Clean Energy for all Europeans” package, which addresses the energy performance of buildings, renewable energy, energy efficiency, good governance, and the design of the electricity market design.
“The launch of this joint EU-UNDP Programme intended to address Moldova’s current and emerging needs in terms of energy security and resilience is timely and critical. Spillovers from the war in Ukraine are affecting the Moldovan economy through a variety of channels, including a spike in energy prices, trade disruptions, adverse confidence effects and the indirect impact of sanctions. Our recent analysis shows that 60% of Moldova’s population live in energy poverty, spending more than 10% of their budgets on energy bills. The new programme will enable us to engage in the green energy transition by promoting energy efficiency and renewable solutions envisaged by the EU Green Deal,” said Mirjana Špoljarić Egger, UN Assistant Secretary-General, UNDP Assistant Administrator and Regional Director for Europe and the CIS.
The new EUR 10 million programme “Addressing the impacts of the energy crisis in the Republic of Moldova” is a complementary support, in addition to the EUR 60 million, in the form of budget support, as emergency assistance to overcome the energy crisis and EUR 5 million for supporting the vulnerable population affected by the energy crisis, provided by the European Union. It supports the Moldovan public authorities and vulnerable groups in the context of prices’ increase for natural gas, which is leading to chain price escalations.