Moldova secures World Bank grant to modernize energy sector

Moldova's Ministry of Energy and the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group, have signed a grant agreement providing up to $1.7 million in non-repayable financing to prepare the construction of new high-efficiency combined heat and power generation facilities for Termoelectrica.

The funding is being provided through the Project Preparation Grant Facility and will finance the preparation of technical documentation, specialized studies, environmental and social assessments, and other activities needed to develop the strategic investment under the Resilient, Efficient, Secure Combined Heat and Power Program (RESHAPE-Moldova), CE Report quotes MOLDPRES.

The agreement is based on the findings of a feasibility study carried out under the Second District Heating Efficiency Improvement Project (PIESACET-2), which was financed by the World Bank. The study recommends building a new high-efficiency combined-cycle cogeneration plant to modernize the energy infrastructure of Chișinău and strengthen Moldova's energy security.

The planned facility will have an electrical generation capacity of approximately 250 megawatts (MW) and a thermal generation capacity of about 180 MW. By producing electricity and heat simultaneously with lower fuel consumption than conventional technologies, the plant is expected to reduce energy production costs and improve the efficient use of energy resources.

The investment will also support the gradual replacement of aging generation facilities, increase energy efficiency, reduce fuel consumption, and cut greenhouse gas emissions. In addition, the project is expected to facilitate the integration of renewable energy sources and contribute to a more resilient and flexible energy system.

The grant will be implemented by the Consolidated Unit for the Implementation and Monitoring of Energy Projects (UCIPE) in cooperation with Termoelectrica and the World Bank.

As a non-repayable grant, the funding does not create any repayment obligations for Moldova. The funds will be used to prepare the investment project, with all grant-financed activities scheduled for completion by the end of 2027.

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