OVERVIEWOF ENERGY EFFICIENCY POLICIESOF THE REPUBLIC OF MOLDOVA

23rd-24th of April, Bangkok, Thailand

Inter-regional workshop on Energy Efficiency Investment Projects Pipeline

ENERGY SECTOR REVIEW

– The Republic of Moldova is highly dependent on energy imports,

95% of the energy consumption is covered from import;

– Very high energy intensity (roughly 3 times over EU average);

– The share of RES in final energy consumption is about 4% (according to

the 2012 Energy Balance).

The lack of own resources and high energy intensity sets the energy efficiency and renewable energy sources as a top priority

ENERGY INTENSITY(1)

0.00

0.15

0.30

0.45

0.60

0.75

2009 2011 2013 2015 2017 2019

tep

/ 1

000

€

EI MD toe/ 1000 € goal EI EU Expon. (EI MD toe/ 1000 €) Expon. (EI EU)

ENERGY BALANCE

The three main energy consumers are residential sector (about 44%), transportsector (18%) and industry (13%).

2009 2010 2011 2012

GROSS INLAND CONSUMPTION, ktoe 2409 2574 2577 2462

Energy transformation sector 461 472 440 420

GROSS FINAL ENERGY CONSUMPTION

1940 2077 2136 2043

Losses (T&D) 143 153 140 138

Industry 208 250 255 259

Transport sector 292 358 381 369

Residential sector 907 944 963 886

Service sector 34 41 38 36

Public sector 259 232 238 243

Agriculture/ Forestry 52 54 50 48

Non-specified 18 27 26 18

461 472 440 420

292358 381 369

907944 963 886

0

500

1000

1500

2000

2500

3000

2009 2010 2011 2012

Th

ou

san

dto

ns

of

oil

equ

ival

ent,

kto

e

energy tranformation sector losses (T&D) industry

transport sector residential sector service sector

public sector agriculture/ forestry non-specified

ENERGY BALANCEGROSS INLAND ENERGY CONSUMPTION

THE STRUCTURE OF ENERGY BALANCE

domestic sources

liquid fuels

natural gas

solid fuels

electricity

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012

Ministry of Economy –public central authority in the energy sector

Ministry of Regional Development andConstruction –public central authority in the construction andregional development sector

Energy Efficiency Agency –

administrative authority in the field of EE & RES

Energy Efficiency Fund –institution focused on identification and financingof EE & RES projects

Government DecisionNo. 690 of 13.11.2009

Government DecisionNo 1173 of 21.12. 2010

LawNo. 160 of 12.07.2007

EE PROMOTIONINSTITUTIONAL FRAMEWORK

Government DecisionNo. 662 of 10.11.2009

EE PROMOTION LEGAL FRAMEWORK (1)

• Energy Strategy 2030

• NDS „Moldova 2020”

• Law on Energy Efficiency

• National Energy Efficiency Program 2012-2020

• National Energy Efficiency Action Plan 2013-2015

• Regulation on energy services

• Regulatory framework for energy auditing

GD No.102 of 05.02.2013

GD No. 833 on 10.11.2010

Law on Adherence of the RM to the Treaty establishing the Energy Community

Law No.142 of 02.07.2010

GD No. 113 on 07.02.2013

GD No. 1093 of 31.12.2013

Law No.117of 23.12.2009

Law No.166 of 11.07.2012

* REGULATORY FRAMEWORK FOR ENERGY AUDITING

Acts aproved by Government Decision:

1. Regulation on energy audit

2. Regulation on authorisation of energy auditors

3. Methodology for calculation of energy audit cost

Acts aproved by EEA Director Decision:

1. Guidelines for trening and examination of energy auditors

2. Energy auditor code of conduct

EE PROMOTION LEGAL FRAMEWORK (2)

TO BE DEVELOPED/ APPROVED

• Law on the energy performance of buildings

• Methodology on buildingsenergy performance calculation

• Law on eco design

• Law on energy labelling

• Law on thermal energy andpromotion of cogeneration

• Methodology on energysavings calculations

the final drafts are available

GENERAL OBJECTIVES

1• reducing the primary energy consumption by 20% until 2020

2• increasing the share of renewable energy sources in the overall

energy balance up to 20% in 2020

3• increasing the share of biofuels to at least 10% in the total amount

of fuels used in 2020

4• reducing the GHG emissions by 25% until 2020

The National Energy Efficiency Program (NEEP) sets the priority policiesand actions which shall be implemented during 2011-2020 in order to meetthe challenges emerged as a result of energy prices increase, dependencyon imported energy resources and the impact of the energy sector onclimate change.

Implementation of the NEEP shall be ensured through National EnergyEfficiency Action Plan (NEEAP) and National Renewable Energy ActionPlan (NREAP), to be newly approved every three years.

The NEEP shall be updated once in a three years period or, if necessary,according to the technical advancement and amendments operated to ECDirectives.

NATIONAL ENERGY EFFICIENCY PROGRAM

Sectors covered by NEEP :

• Energy transformation/conversion sector;

• Industry sector;

• Constructions sector;

• Transportation sector;

• Public sector.

Measures to be implemeneted:

-investment stimulation; - biofuels promotion;

-promotion of RES; - public awareness raising/growth;

-energy consumption reduction; - cogeneration promotion;

- promotion of energy efficient tyres - losses reduction;

-promotion of energy labelling;

-promotion of energy efficient street lighting systems;

-promotion of the use of energy-efficient equipment/technologies, etc.

NATIONAL ENERGY EFFICIENCY PROGRAM (2)

No. Sector2013-2015

energy savings, ktoe %

1. Energy transformation sector 57 13,4

2. Industry 43 10,0

3. Transport sector 98 23,0

4. Public (service) sector 37 8,6

5. Residential (household) sector 193 45,0

TOTAL 428 100,0

ESTIMATED ENERGY SAVINGSCALCULATED USING „TOP-DOWN” APPROACH

No. Sector2013 – 2015

energy savings, ktoe %

1. Energy transformation sector 34 62,83

2. Industry 16 29,28

3. Transport sector 0 0

4. Public (service) sector 4 7,58

5. Residential (household) sector 0,2 0,31

TOTAL 53,2 100

Note. The above mentioned energy savings, calculated using the „Bottom-Up” approach cover by12% the estimated savings submitted in previous table – determined by „Top_Down” approach. This discrepancy between goal on energy savings and estimated achievements by 2015 appearsbeacause of available funds.

ESTIMATED ENERGY SAVINGSCALCULATED USING „BOTTOM-UP” APPROACH

Financing institutions in EE and RES: UNDP, USAID, GIZ, SIDA, EBRD, EIB, JICA, etc.

FINANCING INSTITUTIONS IN EE FIELD

Moldovan Residential Energy Efficiency Financing Facility - 35 MEuro

Moldovan Sustainable Energy Financing Facility II- 22 MEuro

Energy Efficiency Fund - 27 MEuro (by 2015)

Global Environmental Facility – 0.8 MEuro

ENERGY SAVINGSCALCULATED BY „TOP-DOWN” APPROACH

0.8 49.0

164.543.9

207.8

0

40

80

120

160

200

240

2009 2010 2011 2012

Th

ou

san

dto

e

energy savings cumulative savings

REDUCTION OF GHG EMISSIONS

0

5

10

15

20

25

30

35

1990 1994 1998 2002 2006 2010 2014 2018

Mil

lio

nto

ns

GHG emissions goal Expon. (GHG emissions)