Moldova Residential Energy Efficiency Finance Facility - Phase II (MoREEFF2)

Currently, most of Moldova's energy demand is covered by imports. High dependency on fossil fuels and energy imports combined with waste of energy by end users and the poor condition of the energy infrastructure result in high carbon intensity and costs that could be reduced by improving energy efficiency practices and by promoting the use of renewable energy sources (especially biomass from agriculture). MoREEFF offers lending facilities to local participating banks which then on-lend these funds to their clients for individual projects aiming at reducing energy consumption and CO2 emissions, as well as improving energy use in industries, SMEs, agribusiness and commercial buildings. Until now, such lending opportunities were very limited, since considered as highly risky. In addition, a technical assistance component helps improve the local banks' capacity to appraise and finance these types of projects. Local engineers also benefit from the support aimed at improving their technical expertise to better identify and prepare technically feasible and bankable projects. As a result, the final beneficiaries receive much needed support to engage in investments in residential energy efficiency.