Core area “Climate and energy, just transition” Increasing energy efficiency, promoting municipal development

    Russia’s war of aggression in the region has plunged the Republic of Moldova into a deep energy crisis – the people, trade and industry are suffering from the sharp increase in energy prices. The German Development Ministry (BMZ) has expanded its engagement in the energy sector since 2022 and is supporting Moldova in its efforts to restructure its energy sector so as to make it more climate-friendly and reduce the country’s dependence on fossil fuels. Another focus area of cooperation is municipal development.

    Landscape near Chisinau

    Over 90 per cent of Moldova’s power and heat comes from natural gas. The country depends on gas and oil imports from abroad. Up until the war against Ukraine, Moldova depended almost entirely on gas and power imports from Russia and the breakaway region of Transnistria. To lessen this dependence, the government is pushing forward the integration of the country with European power markets, the expansion of renewable energies and measures to increase energy efficiency.

    Through the Paris Agreement, Moldova has also committed to reduce its greenhouse gas emissions by 70 per cent by 2030 compared with the base year 1990. It wants to reach net zero climate-damaging emissions by 2050. The share of renewable energies is to be increased from roughly seven per cent now to 27 per cent in 2030.

    The Federal Ministry for Economic Cooperation and Development (BMZ) is supporting its partner country in its efforts to implement these ambitious plans. A focus is put on improving the energy efficiency of buildings which account for more than half of the entire energy consumption. One technical cooperation project supports the creation of a public energy efficiency fund, international expert exchange and the development of a network to assist municipalities with planning, developing and implementing energy projects. Online platforms and information campaigns are to make it easier for the people to access public funding programmes.


    Municipal development

    A large proportion of people in Moldova, especially in rural areas, has inadequate access to basic services such as water supply, sanitation and waste management. Municipalities lack the resources to expand and maintain the infrastructure.

    In order to improve the living conditions of Moldovans and contribute to environmental protection, the BMZ is providing advisory services to the Moldovan government on developing responsive and participatory regional development policies. The BMZ is assisting municipalities and districts in implementing national strategies, expanding local infrastructure and improving their services in the fields of water and wastewater, waste management, and energy efficiency.

    Germany is working within the framework of Financial Cooperation to support the expansion of municipal water and sewage networks, water treatment plants and the construction of a district heating system in the centre of the country.

    Impacts of Germany's activities

    • Some 900,000 households – that is roughly 75 per cent of all households – received energy benefits during the 2022/23 heating period from Moldova’s Energy Vulnerability Reduction Fund to help them cope with the sharp increase in energy prices. German development cooperation provided financial support to the Fund.
    • Since 2005, 400,000 people nationwide have benefited from improved social infrastructure – in 2018-20 water supply, for example, was provided for 15,000 people and the construction of pavements, street lighting and recreational areas improved the quality of life significantly for 43,000 people in 18 small towns and villages.
    • Since 2021, more than 110,000 people have been given access to improved sanitation and wastewater management both in cities and in rural areas.
    • More than 35,000 hospital patients a year and almost 1,000 medical workers have benefited from improved treatment and working conditions since 2022 through new technologies, capacity building and improved energy efficiency.
    • Upgraded energy efficiency in schools and kindergartens has improved the learning and working conditions for more than 1,400 children, including Ukrainian refugees, and their care takers.
    • Civic participation formats have enabled almost 14,000 people since 2019 to be directly involved in the forming of political opinions and political decision-making, for example in the drafting of more than 60 local development plans for public authorities.

    As at: 26/07/2024