Moldova to Modernize Electricity Distribution Grid with $30 Mill EIB Loan

A four-year programme of investment in the Moldovan electricity distribution sector will get the European Investment Bank’s (EIB) financial support through a loan worth $30 million.

Implemented by Moldova’s largest private electricity distribution system operator, ICS Premier Energy Distribution, which serves about 70% of the country, the programme will be co-financed by the European Bank for Reconstruction and Development (EBRD) via a parallel $30 million loan.

EBRD’s loan to Premier Energy Distribution is in two tranches – the first US$ 22 million tranche will cover Premier Energy Distribution’s investment programme through 2024 whereas the second tranche of US$ 8 million will cover its 2025 programme.

EIB is allocating the funds through its dedicated development finance arm EIB Global, to support the modernization, digitalization, and expansion of the electricity distribution grid in the central and southern parts of Moldova, including the capital Chisinau and its surrounding area where over half the investment programme will be focused.

Modernizing the regional grid will not only help save more than 2,500 tonnes of carbon dioxide emissions a year but will also contribute to the reduction of losses by 21%, through replacing older assets with more energy-efficient ones, and ensure energy security.

EIB’s loan will help Premier Energy Distribution ensure the security of supply and improve services to end users while transforming the conventional distribution grid into a digital smart grid.

The EBRD’s 2023-2028 investment strategy for Moldova, which was granted EU candidate status last June, has fostered energy resilience as a key element.

Previously, Chisinau has become the first Moldovan city to join EBRD Green Cities, the bank’s flagship €5 billion urban sustainability programme to improve sustainability.

Chisinau’s Green City Action Plan, drawn up in 2020, identified air pollution and climate mitigation as priority environmental challenges.

A major institutional investor in Moldova, the EBRD has so far invested more than €2 billion in 159 projects in the country and focuses on boosting Moldova’s energy resilience, developing efficient and sustainable public utilities, as well as promoting European standards across sectors.

Moldovan Ambassador of the European Union, Janis Mazeiks, welcomed the new loan by the EIB that will help his country implement the energy digitalization action plan.

He emphasized that the development of a cyber-secure, transparent, and competitive market for digital energy services will also allow for the efficient integration of renewable energy.

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