The European Bank for Reconstruction and Development (EBRD) is lending 400 million euros to Moldovan state energy trader Energocom to boost the country’s energy reserves by purchasing gas and electricity on European markets.
The package includes a 300 million euro senior working capital loan for energy purchases and 100 million euros in guarantees to be issued by the EBRD on behalf of Energocom to eligible EU suppliers. These guarantees, backed by the Moldovan state, will enable the company to acquire natural gas and electricity.
Moldova lacks significant energy resources and has no major gas storage facilities. Natural gas accounts for 31 per cent of its energy consumption, with 70 per cent used by households and district heating companies. Following the war in Ukraine, Moldova enhanced its energy security with EU support and through interconnections for gas and electricity with Romania.
Previously, the EBRD provided a 500 million euro revolving loan facility, including a 34 million euro grant from the Norwegian government, and extended financing to cover electricity purchases in 2025.
The modernisation of district heating
Moldova is also receiving loans from the European Investment Bank’s development arm (EIB Global), which is providing over 244 million euros for energy and healthcare upgrades, and 143.5 million euros to modernise district heating in the capital, Chisinau. Additionally, a 101 million euro loan will support the construction of a hospital in the southern city of Cahul.
The district heating works, including the replacement of outdated vertical systems in apartment buildings with horizontal pipelines, installation of individual substations, and upgrades to internal distribution networks, will be carried out by Termoelectrica, Moldova’s largest heating company.
The improvements are expected to reduce energy consumption by 25 per cent, cut heating bills, and lower greenhouse gas emissions by seven per cent over the next two decades. The project is scheduled for completion within seven years.
“This project is a strategic investment that will help improve the quality of life for around 300,000 households in the city,” said Minister of Energy Dorin Junghietu. “By installing 2,510 individual thermal points and converting 1,665 apartment buildings to a modern horizontal distribution system, we’ll enable each apartment to better control its energy use, increase efficiency, and ultimately lower citizens’ bills.”
The project is co-financed by the European Bank for Reconstruction and Development (EBRD), with additional grants from the EU and the multi-donor Eastern Europe Energy Efficiency and Environmental Partnership (E5P) fund.