As Moldova’s energy policy looks at energy security as a prime consideration, the EBRD has announced a $30 million smart grid loan to ensure the security of supply.

The European Bank for Reconstruction and Development (EBRD) is lending $30 million to ICS Premier Energy Distribution S.A., Moldova’s largest private electricity DSO, to finance its investment programme to 2025 while it modernises, digitalises and upgrades the distribution grid in the central and southern parts of the country, including the capital Chisinau.

The loan is to help Premier Energy Distribution transform a conventional distribution grid into a digital smart grid, ensuring security of supply and improving services to end users, which will be carried out in two tranches.

$22 million will cover the utility’s investment programme through 2024. A further $8 million will cover its 2025 programme.

Premier Energy Distribution is majority owned by Emma Capital Limited, a limited liability company registered in Cyprus. It covers up to 70% of Moldova’s territory.

This loan follows on from Chisinau’s becoming the first Moldovan city to join the Bank’s flagship €5 billion ($5.3 billion) urban sustainability programme, EBRD Green Cities, to plan to improve its sustainability.

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Highly dependent on importing energy supplies, fostering energy resilience is a key element in the EBRD’s 2023-2028 investment strategy for Moldova.

And according to the IEA, the Eastern European country’s energy sector faces major challenges to improving energy security and achieving its energy transition ambitions.

Their electricity sector specifically faces the issue of integrating Variable Renewable Energy (VRE) sources as their penetration is expected to increase significantly in the coming years.

The IEA cites how a country’s ability to integrate VRE depends on the flexibility of its power system –largely determined by its infrastructure, such as interconnectors, electricity storage and flexible power plants.

The Moldovan power system is currently based on an inflexible domestic generation mix and the country relies on Ukraine both for reserves and for balancing its generation. This reliance limits the ability to integrate large shares of VRE sources into the grid.

Thus, such investment in the grid as from the IEA and EBRD are expected to prove important as the country continues an energy security drive in the face of Russia’s Ukraine invasion.

As Moldova’s energy policy looks at energy security as a prime consideration, the EBRD has announced a $30 million smart grid loan to ensure the security of supply.

The European Bank for Reconstruction and Development (EBRD) is lending $30 million to ICS Premier Energy Distribution S.A., Moldova’s largest private electricity DSO, to finance its investment programme to 2025 while it modernises, digitalises and upgrades the distribution grid in the central and southern parts of the country, including the capital Chisinau.

The loan is to help Premier Energy Distribution transform a conventional distribution grid into a digital smart grid, ensuring security of supply and improving services to end users, which will be carried out in two tranches.

$22 million will cover the utility’s investment programme through 2024. A further $8 million will cover its 2025 programme.

Premier Energy Distribution is majority owned by Emma Capital Limited, a limited liability company registered in Cyprus. It covers up to 70% of Moldova’s territory.

This loan follows on from Chisinau’s becoming the first Moldovan city to join the Bank’s flagship €5 billion ($5.3 billion) urban sustainability programme, EBRD Green Cities, to plan to improve its sustainability.

Have you read:
Netherlands and EBRD funnel €370mn to repair Ukraine’s transmission systems
Australia’s AGL Energy to test hot water system support for the grid

Highly dependent on importing energy supplies, fostering energy resilience is a key element in the EBRD’s 2023-2028 investment strategy for Moldova.

And according to the IEA, the Eastern European country’s energy sector faces major challenges to improving energy security and achieving its energy transition ambitions.

Their electricity sector specifically faces the issue of integrating Variable Renewable Energy (VRE) sources as their penetration is expected to increase significantly in the coming years.

The IEA cites how a country’s ability to integrate VRE depends on the flexibility of its power system –largely determined by its infrastructure, such as interconnectors, electricity storage and flexible power plants.

The Moldovan power system is currently based on an inflexible domestic generation mix and the country relies on Ukraine both for reserves and for balancing its generation. This reliance limits the ability to integrate large shares of VRE sources into the grid.

Thus, such investment in the grid as from the IEA and EBRD are expected to prove important as the country continues an energy security drive in the face of Russia’s Ukraine invasion.