The Ministry of Energy, with the support of the U.S. Agency for International Development (USAID), through the Moldova Energy Security Project (MESA), today launched the test phase of the Super ESCO program, aimed at improving the energy efficiency of public buildings and which will be managed by the Energy Efficiency Agency. Moldova Super ESCO aims to develop the concept from a legal point of view and to see how this financing mechanism will work in practice by applying it to at least two selected public buildings. For this purpose, a grant of about 1 million US dollars will be allocated from USAID for energy efficiency measures. "The ESCO financing model implemented by other countries shows that investments in energy efficiency pay for themselves in energy savings within a few years. We, as a country, spend two to three times more money to heat one square meter of space, not because energy prices are higher, but because we have not paid due attention to energy efficiency. At the same time, the biggest constraint is that there is a lack of financing instruments, or the available resources are very limited," said Energy Minister Victor Parlicov. The Moldova Super ESCO program aims for a pay-for-performance approach to incentivize energy efficiency improvements that can be measured and validated. It is designed to promote efficient project implementation and appropriate contracting methods, while facilitating the application of a mix of financing for public buildings. This mixed financing may, in the near future, include private investment, loans or even beneficiaries' own resources. "The implementation of ESCO-type projects in Moldova is required as energy consumption increases, especially in the buildings, transportation and industry sectors. By applying the 'energy efficiency first' principle, Moldova can ensure that it can continue to power Moldovan homes and businesses using energy more efficiently. This program will impact the country's development, environment and energy security. USAID will continue to support the Republic of Moldova as it strengthens and diversifies its energy sector, and initiatives like this are aimed at building a green, sustainable and clean energy future," said Will Trigg, Chief of Economic Development, USAID Moldova. "The scale of investment needed to make public buildings energy efficient far exceeds the capacity of the budget system to cover current needs. Mechanisms and instruments are therefore needed to stimulate the attraction of private investment in the energy retrofitting of public buildings. There is also a need for an institution with sufficient capacity and functional flexibility to put these mechanisms in place, adjust and launch them on the market, then monitor their functioning and intervene only to ensure that they operate in a sustainable manner. These considerations have also been reflected in the functional model of the future institution resulting from the reform of the Energy Efficiency Agency," said the Director of the Energy Efficiency Agency, Ion Muntean. The ultimate goal of the program is to generate long-term savings, reduce energy consumption and greenhouse gas emissions, promote energy efficiency projects in public buildings, thus contributing to Moldova's transition to sustainable energy practices. Money from savings on energy bills will be directed into a special fund set up by the Energy Efficiency Agency and reinvested in other similar projects. The projects selected will be those that bring the greatest energy and thermal comfort savings in relation to the investments made.