The Ministry of Environment of the Republic of Moldova with the support of the United Nations Development Program (UNDP) launched today “ESCO Moldova Project - Transforming the market for Urban Energy Efficiency in Moldova by introducing Energy Service Companies”. The project objective is to create a functioning, sustainable and effective ESCO market in Moldova by converting existing energy service provider companies into ESCO companies (Energy Service Companies), as the basis for scaling up mitigation efforts in the whole municipal building sector in Moldova, leading to CO2 emission reductions by implementing energy performance contracts.

“According to the Kyoto Protocol, Republic of Moldova together with other non-Annex 1 party countries to this international treaty has concrete obligations concerning GHG emissions reduction to reduce gas emissions by 2020. The bright side is that due to the lack of a developed industry, the GHG emissions are not very high, but this does not stop us to honor the commitments we have made. Next year in Paris will be held the 21st United Nations Climate Change Conference and the launch of the ESCO Moldova Project is very timely in this context. The Ministry of Environment pays a particular attention to this subject and greets any initiative which contributes to an active collaboration between the government structures, foreign partners and private sector. We will be glad to disseminate this project all over the country”, mentioned Lazar Chirica, the Deputy Minister of Environment.

The project has an implementation period of 4 years and is funded by the Global Environment Facility (GEF), and co-financed and implemented by the UNDP with a total  budget of 1,450,00 US$.

“The implementation of projects like ESCO Moldova, should serve as an example of establishing a multilateral collaboration with local and central authorities, banking sector, private engineering companies and other stakeholder to achieve the common goal of increasing the energy efficiency of building sector in Chisinau”, mentioned Narine Sahakyan, Deputy Resident Representative, UNDP Moldova.

The project will work on the largely untapped energy efficiency market in the municipal sector, especially in facilities owned and operated by municipalities, in the Chisinau area for the first stage and then to other parts of Moldova.

”Once singing the Covenant of Mayors, Chisinau Mayoralty assumed the responsibility to reduce the CO2 emissions with 20% until 2020. Thus, ESCO project represents the perfect mechanism which can help us achieve the commitments we made”, mentioned Natalia Lipca, Counselor to the Chisinau Mayor.

By the end of the project is planned , implementing 20 energy efficiency demonstrational projects that will operate on the basis of energy performance contracts, which will create better conditions in the residential and public buildings sector in Chisinau.

Mihail Stratan, Director of the Energy Efficiency Agency mentioned the following during the event: “We are very glad to be present here, at the Launch event of the ESCO Moldova Project, after two years of productive partnership. We are sure that by applying the European experience, we will be able to implement a very well structured and defined ESCO market, to ensure the functionality of this Project”.

Energy Service Company (ESCO) is a private business unit that provides integrated financial and technical solutions for achieving energy cost reductions (energy savings), and whose overall compensations are linked to the performance of the implemented solutions.