Alliance to Save Energy FACT SHEET

BACKGROUND OBJECTIVES The Republic of Moldova is practically devoid of Under the MUNEE program in Moldova, the indigenous energy resources that would be sufficient Alliance works with cities of Chisinau, Ungheni, to fully support its economy. It is 98% dependent on Floresti, , Cimislia, Balti, and Straseni. The imported energy, and can hardly cope with the Alliance helps each city recognize the potential for increasing fuel prices. Energy tariffs have been energy efficiency to minimize energy costs in their increasing gradually; though still have not reached budgets and lessen energy supply constraints. The market levels. End-user tariffs are not sufficient to Alliance also builds capacity within the cities to cover the operating costs for the local utility enable implementation of energy efficiency suppliers, not to mention the costs for investment in measures, especially weatherization of buildings. upgrading the infrastructure and carrying out efficiency improvements. The existing energy supply APPROACH infrastructure has substantial overcapacity, while In Moldova the Alliance applies a comprehensive poorly insulated residential buildings are approach to energy efficiency that covers four key dramatically inefficient, which results in heavy utility areas such as (i) district heating policy reform on the cost burden for the population. national level; (ii) capacity building for municipal In 2001, the Alliance to Save Energy (Alliance) energy efficiency projects; (iii) creation of launched the Municipal Network for Energy homeowner associations; and (iv) public awareness Efficiency (MUNEE) program in Moldova. Its efforts and outreach on end-use energy efficiency. The started with educating about the Alliance provides technical assistance on legal review benefits of energy efficiency and have evolved to of heat policies, housing legislation, energy planning, cover energy policy reform and consumer energy implementation and monitoring of comprehensive efficiency awareness. energy efficiency programs and demonstration projects, organization of energy management CHALLENGES seminars and study tours, and dissemination of informational materials for consumers. The Alliance Due to constantly growing energy prices, the issue of focuses on ways to improve energy efficiency of heat energy costs is becoming increasingly important to consumption in public and residential buildings. local governments in Moldova. Already, 20-40% of the community and household budgets are RESULTS consumed by energy costs. District Heating Projects In absence of a developed industrial production As a result of the 1999 heat sector crisis that emerged sector, the residential sector is the biggest energy due to supply and cost problems, the Government of consumer. With ever-growing prices and a high Moldova decided to implement a Heat Sector Reform incidence of poverty, end-user energy efficiency is an project to create a favorable investment climate for immediate issue that should be addressed. the heat sector. Within the heat policy reform, the The most effective way to cope with the price Alliance: increases on the municipal level is through energy • Developed Moldova’s Heat Sector planning and implementation of energy efficiency Development Strategy, as technical assistance to the projects in -owned buildings such as Ministry of Energy, approved by the Government in schools and hospitals. Based on regional experience, February 2003. energy consumption can be reduced by 20-40%, • Helped the Ministry of Energy draft the Heat easing the burden on local budgets. Law which would enable the implementation of the Heat Sector Development Strategy. The draft law

MUNEE: Technical Assistance, Networks, Energy Management & Policy Reform for an Efficient Future Alliance to Save Energy MOLDOVA FACT SHEET covers the legal framework for production, The Alliance also helped the MCHOA start the transmission, distribution, supply and consumption Locuinta (Dwelling) monthly magazine for housing of heat; it also defines the roles of central and local managers and HOAs members. In conjunction with governments and the regulatory authority. Due to the Balti Municipal Council, the Alliance prepared protracted debates among Moldovan law makers, the and disseminated brochures about HOAs and their draft law is still pending approval. role in improving residential building comfort, and • Worked with a variety of interest groups raised further awareness about energy efficiency in including local governments, non-governmental multifamily buildings through newspapers and organizations, housing and private associations to television. explain the provisions of the Law and amass Other Alliance assistance has focused mainly on feedback on its clauses to assure that the Law fully training and strengthening energy-related reflects the needs of all stakeholders. relationships between municipalities and the housing • Reviewed drafts of the Condominium Law, sector. Jointly with the MCHOA of Chisinau and advised the Union of Home-Owners Associations on Balti, the Alliance conducted seminars and events the draft Housing Law and supported the legal highlighting the positive relationship between review and clarification of the Government Decision successful HOA management and energy efficiency. No. 191 regulating the supply of communal services. The Alliance also organized numerous roundtables • Produced dozens of articles, editorials, and bringing together national and local decision-makers press releases, which were published in national to address energy efficiency problems that the news, such as Economicheskoye Obozrenie, Office, housing sector faces. Welcome Magazine, Moldova Suverana, StroyBusiness, and Komsomoskaya Pravda. The media outreach As part of institutional capacity building, the promoted heat reforms and increased transparency Alliance helped create the Union of HOAs from and public discussion about the causes of heat sector Moldova, which brought together HOA Managers crisis and ways to address heat sector problems. A from three main urban areas: Chisinau, Balti and series of recent articles shared the experiences of Ungheni. The Union now vets the changes to the energy efficiency solutions and financing legal and regulatory framework. The Alliance also mechanisms from other countries in the region. advises the Union on energy efficiency management • Advised the government on restructuring the in buildings, and on ways to eliminate the legal, National Agency for Energy Conservation, which accounting and managerial barriers to energy occurred under Decision 1452 on December 21, 2006, efficiency. and helped to identify technical assistance for legal More recently, the Alliance developed draft framework revision and Agency’s capacity-building. Guidelines for Housing Sector Administrators. The • Advised the government on creation of a guidelines provide advice for registration, revolving fund for financing energy efficiency and management, accounting, and energy efficiency renewable energy projects. improvement of residential buildings. Home Owner Associations (HOAs) Education & Awareness Campaign The Alliance has worked extensively with the The Alliance has continuously worked to increase the housing sector, particularly in the municipalities of public awareness about benefits of energy efficiency. Balti, Ungheni and Chisinau. The Alliance helped Examples of Alliance’s awareness campaign include: the Municipal Council of Homeowner Associations (MCHOA) from Chisinau to receive a $14,000 grant • Broadcasted public advertisements on energy from the World Bank for creation of an Advisory efficiency measures on two TV channels for over two Center for Tenants and Home Owner Associations. months, and two talk-show interviews that

MUNEE: Technical Assistance, Networks, Energy Management & Policy Reform for an Efficient Future Alliance to Save Energy MOLDOVA FACT SHEET

addressed the objectives of Heat Sector Reform and • Raised $1,000 through sale of school-children’s discussed the concepts of MUNEE. drawings. This fundraiser aimed to raise money and awareness about energy and created an online • Cooperated with donors through forums, such gallery of drawings where Moldovan pupils as the Moldova Energy Donors Working Group depicted their vision of energy efficiency and the respective website (www.edwg.md). (www.edwg.md). The funds were used for thermal • Organized traditional monthly roundtables for renovation at the Municipal Orphanage No. 2 in energy market stakeholders that opened a dialogue Chisinau. This effort raised the indoor temperature between suppliers, consumers, decision-makers, from an unbearable 10oC to a more comfortable 15o donors, and media on hot energy efficiency topics. - 17oC, improving the well-being of both staff and The goal of the events was to communicate the students. existing problems and jointly seek solutions. • Organized international events to disseminate • Drafted, published and distributed 1,000 energy energy efficiency practices: efficiency advice booklets for condominium residents. Ž “Removing Barriers to Residential Energy The booklets consisted of energy-saving tips for use Efficiency in Central and Eastern Europe”, around the kitchen, household appliances, and Kiev, February 6-7, 2006. The event was other household energy hot spots. A similar booklet supported by the Renewable Energy and was published for managers of condominiums and public Energy Efficiency Partnership (REEEP) and buildings addressing general energy-saving USAID, hosting over 90 experts from different measures for buildings. countries who shared best practices in energy • Organized training courses on Energy Planning efficiency within the residential sphere; and Management for 10 municipalities. As a result, Ž “Financing Municipal Energy Efficiency in one of the municipalities developed an energy the Commonwealth of Independent States” project and a business plan for decentralizing the Forum held on November 13-14, 2006 in heating system in the city. Moscow, . The Forum gathered over 60 • Organized study tours to Poland, Czech Republic participants representing more than 11 and Lithuania and follow-up workshops for senior countries from the Commonwealth of government representatives, municipalities, and Independent States, Central Europe, the energy experts. The workshop examined the legal Baltics, and Western Europe. The attendees framework and heat strategies of these countries, represented central and local governments, relationships between the consumers and energy businesses, banks, non-governmental suppliers, and the role of condominiums and organizations, and mass media. energy efficiency in the housing sector. Energy Efficiency Improvement Projects in • Provided recommendations to EU Energy Charter Municipalities Experts with heat policy recommendations, which • Distributed weatherization materials to 15 schools the Energy Charter incorporated into its report: and 2 hospitals. Provided by USAID, the materials Moldova In-Depth Review of Energy Efficiency Policies increased indoor temperature by 3o – 4oC, improving and Programs. the indoor comfort and quality of education for more than 6,000 pupils. • Published numerous articles in national publications to elucidate the importance of energy • Implemented 3 demonstration projects in efficiency jointly with other recognized energy Chisinau. The Telecommunications College was experts in Moldova. selected for a pilot project to show the possibilities of saving energy and money while making classrooms

MUNEE: Technical Assistance, Networks, Energy Management & Policy Reform for an Efficient Future Alliance to Save Energy MOLDOVA FACT SHEET more comfortable during cold winters. Schools No. 95 and No. 83 were equipped with automated heat metering and control devices. The results show that it was possible to reduce energy consumption by 20%, and to increase indoor temperature from 17oC to 20oC.

For More Information Tanya Lujanskaya Alliance to Save Energy [email protected] Chisinau, Republic of Moldova

Astghine Pasoyan Alliance to Save Energy [email protected] Yerevan, Armenia

www.munee.org Last Update: April 2007

This work is funded by the U.S.

Agency for International Development

MUNEE: Technical Assistance, Networks, Energy Management & Policy Reform for an Efficient Future