Sector budget financing "Promoting energy security of vulnerable groups in the Republic of Moldova"

completed

The Republic of Moldova is severely affected by the effects of the Russian war of aggression in Ukraine. The energy and gas crisis, which has been in place since the end of 2021, has worsened significantly as a result. The energy crisis was triggered by the necessary extension of a gas supply contract with Gazprom. The Russian supplier currently provides almost 100% of the gas. Compared to 2020, import prices for gas have increased twelvefold. In combination with the extreme inflation of an estimated 27.3%, this poses immense challenges for many households. The aim of the module Promoting the energy security of vulnerable households in the Republic of Moldova is therefore to strengthen the ability of the Moldovan government to provide adequate support and social security to vulnerable population groups, which has been severely limited by the various crises. The project volume of EUR 40 million is intended in particular to ensure the affordability of energy supplies. To this end, the funds are to be made available for corresponding government programs. These include in particular the Energy Vulnerability Reduction Fund (EVRF). The program will, among other things, finance a need-based energy price cap for gas and district heating for vulnerable households.