Moldova to borrow loan worth 25 million euros for energy sector's development

The French Development Agency will provide Moldova with a loan worth 25 million euros for the development of the energy sector and the implementation of reforms in the context of the green energy transition.

In this regard, the government today ruled to initiate negotiations on the Credit Facility Agreement between Moldova and the French Development Agency, Green Energy Transition Programme, and to provide authorizations for its negotiation.

At the cabinet meeting, Minister of Finance Victoria Belous said that the Agreement aimed to support Moldova in its transition to green energy by enhancing energy security, promoting sustainability and adapting to climate change.

According to the project, a loan worth 25 million euros is to be disbursed in a single installment.

"For the disbursement of this loan, Moldova commits to undertake 16 actions that will lead to the development of the energy sector. Among the most important ones, there are the approval of legal framework amendments for vulnerable consumers in the energy field and the adoption of regulations regarding guarantees for electricity from renewable sources," said Victoria Belous.

Moldova has set the goal of achieving a 30-per cent share of renewable energy in electricity consumption and a 27-per cent share of renewable energy in final energy consumption by 2030. In 2024, the share of renewable electricity was 16.7 per cent and authorities estimate that it will increase to 27 per cent this year.