Municipal Network for Energy Efficiency

Efficiency in the News

Alliance in Moldova has initiated an important effort in educating the public about the multidisciplinary aspects of energy efficiency and the measures involved in improving it by publishing articles and editorials in Moldovan Newspapers. A large number of articles have appeared in Nezavisimaya Moldova, but also in Moldova Suverana and Golos Balti between September 2004 and May 2005. The articles address the issues of centralized vs. autonomous heating, energy accounting, a need for better HOA management and ownership, energy security and its relation to energy efficiency, tariffs in thermal power, the crucial need for indigenous power, etc. Go to library to view English versions of articles.

In addition, the newspaper Office published its interview with Ruslan Surugiu of the Alliance’s Chisinau office and Mikhail Socol, the Director of “Renovatia” – the Center for Support and Development of the Housing Complex and Municipal Services. The article featured the Alliance’s program and activities in Moldova and the need for continued work on policy development and consumer awareness. According to Surugiu, if comprehensive energy saving measures could be implemented in Moldova, the energy consumption would potentially reduce by 40-60%, based on experience with similar measures and actual results in Poland, Lithuania and other countries. The measures included heat insulation, automatic regulation of heat supply depending on the outdoor temperature, and others.

Surugiu also argued that the energy costs and ultimately the energy prices will continue growing, and producers need to take into account the real demands and optimize their heat networks by considering ways to capture end-use energy savings as well as improving efficiency of supply. Termocom Heat Company showed an increased interest in progressive approaches targeted towards meeting residents’ needs since residential energy consumption is 70% of the market. The heat company offers technical solutions to solve the problems of uniform heat distribution among the apartments (there is a big difference between the indoor temperature in the apartments of the first and top floors). An unofficial English translation of the article is available upon request.

Moldova's heating infrastructure, particularly in the capital of Chisinau, is in serious disrepair. Non-payment is chronic and many residents have not had hot water in years. In many parts of the city, the district heating system is simply being dismantled, replaced by electric heaters or building-level gas boilers.

To try and alleviate this situation, the Alliance has pursued the following objectives in implementing its MUNEE Project in Moldova:

1. Building local capacity to implement municipal energy efficiency projects and increasing actual investments in energy management.
2. Developing a local planning process to plan for future energy needs.
3. Bringing useful energy management experience from other countries in the region to Moldova
4. Implementing demonstration projects to show how small energy efficiency investments can reduce costs, improve comfort and have other benefits.

Demonstration Projects:

Energy Efficiency through Weatherization and Temperature Control Projects:

To exhibit the best results of the energy efficiency measures and disseminate positive experiences, MUNEE conducted several demonstration projects in the Moldova between 2001 and 2004. The projects intended to present cases of possibilities for saving energy and money while making classrooms more comfortable during cold and prolonged winters.
Methods employed included insulation, replacement of old inefficient windows, as well as installation of automatic control systems which allowed classroom temperatures to be adjusted based on occupancy, time of day, and season. The full return on investment occurred in three years and the results will benefit the schools inhabitants for many years to come.

Two of the demonstration projects were implemented in Chisinau Schools No. 83 and No. 95 . In cooperation with Danfoss of Denmark and local partners, the Alliance installed automatic control systems in the two schools, allowing classroom temperature to be adjusted as needed based on occupancy, time of day and outdoor temperature. The following table summarizes the effectiveness of such low-cost energy efficiency measures, revealing an immediate result and financial savings in energy costs which range from 15 to 30%.

These examples demonstrate that such investments in public buildings can alleviate burdens on municipal budgets, and provide additional money for education and other social services.

More recently, in September 2004, the Alliance to Save Energy team in Chisinau conducted a small energy efficiency project at the Boarding School No. 2 of Chisinau . Built in 1956, Boarding School No. 2 was in a deteriorating state. Its campus, which consists of many buildings, has three dormitories. These dormitories are home to 539 children aged 7-18, 196 of which are orphans, and 138 have serious illnesses. Support staff consists of 89 teachers, 2 permanent doctors, 4 nurses, and 63 technical staff. This dormitory of 72 rooms and subsequently 72 radiators houses 200 children aged 7-18.

Subsequently, by utilizing funds of USD $1,000 (MDL 12,000) raised through the sale of children's drawings on the theme of energy and the environment, the Alliance implemented energy saving measures.

The project facilitated the installation of astrofoil in one of the school's dormitories. In addition, other measures were: changing and installing new energy efficient windows, replacing glass walls with those of limestone in lavatories. As these rooms were continuously under-heated, the aim of the energy efficiency (EE) measures in this building was to increase the indoor temperature. Improved insulation had raised the indoor temperature from an unbearable 10°C to a more comfortable 15-17°C without affecting the heating bills. As a result, comfort was enhanced, and the well-being of both staff and students was improved.

Another example of a project, which through its simple and inexpensive energy efficiency measures has enhanced comfort of inhabitants and increased learning productivity, took place at the Lucian Blaga Lyceum in Iargara . Coupled together, the insulation materials such as astrofoil, silicon, d-rubber that was donated by the Alliance, and new windows installed by the Peace Corps, caused a significant increase in classroom temperature from 7-8°C to 15-16°C degrees.

Subsequently, the incidence of illnesses had dropped by 40% while classroom attendance improved. Teachers said: "We did not have draught and snow blowing through the windows. Kids did not have to wear gloves." The Principal has stated that in the winter "the implemented energy efficiency measures saved 10 tons of coal". The savings were put towards conducting capital repairs of the school.

Energy Efficiency Improvements: Not only through Insulation

In addition to providing insulation materials and window replacement, the Alliance has identified several other issues which require timely and detailed attention in order to tackle the energy efficiency problem effectively. The first matter to address in the future is related to proper installation of the insulation materials to produce maximum results, which demands careful and knowledgeable labour. Second, there is the need to regularly maintenance the building in order not to allow irreversible deterioration of capital assets to occur. Third, there is a need to increase overall community involvement in realizing the practical steps of energy efficiency.

A project at a school in Moldova, which aimed to improve indoor comfort during the long heating season, helped highlight the recommendations for future energy efficiency project management. As part of the project, astrofoil and spring seals were introduced as energy saving mechanisms. Heat savings which resulted from these measures were approximately 20%, with a significant increase in indoor temperature of 6° C, from 15 °C to 21°C.

However, despite the fact that the measures significantly increased comfort in the building, it was predicted that they will not result in immediate financial savings due to a lack of temperature control systems. Some argued that even if there were controls installed, the school would have no financial incentive because the local financing law is not flexible enough to allow schools to use money saved on heat to pay for other things like books, building improvements, equipment, teacher salaries, etc.

As a result, the recommendations were as follows:

• to incorporate training and awareness raising exercises
• to involve project beneficiaries in design and implementation activities to increase sense of ownership for better maintenance and potential for replication
• to work with local legislatures to enact laws which would stimulate energy saving behavior, particularly in municipal buildings (schools, hospitals, municipal enterprises, etc.)
• to incorporate training and awareness-raising exercises
• to work with local legislatures to enact laws which would stimulate energy saving behavior

The Alliance is currently addressing these issues and bringing energy efficiency practices onto a new level in Moldova and other Eastern European and CIS countries.

Regional Training: June 17- June 21, 2002: The objective of the training course was to enhance the capacity of municipal experts through specific knowledge on how to implement efficient energy policy in municipalities. The acquired knowledge and skills would allow course participants to develop long- and medium-term Municipal Strategies and Programs for Energy Planning and Management on the area of their municipality, as well as short-term Plans of Action.

The professional team of experts from EnEffect/Bulgaria was training more than 30 participants, representatives of 6 municipalities, through the week to provide the trainees with theoretical and practical knowledge and skills that should:

• provide the basis for conducting an analysis of energy efficiency potential in municipal buildings through energy monitoring and database development. This should help identify priorities in the efforts to improve municipal energy efficiency in buildings;
• raise public awareness of the benefits of municipal energy efficiency and coordinate efforts among key stakeholders; and
• enable participants to plan and organize practical actions and implement actual energy saving projects.

The agenda and training materials are available upon request.

Study Tour: August 24-September 4, 2002, the Alliance completed a study tour to Lithuania and Poland organized within the frame of its "Moldova Heat Strategy Project". Participants included Mayors and heat experts from 4 Moldovan municipalities The objectives of the study tour were to:

• introduce the Moldovan representatives to their counterparts in Polish and Lithuanian Ministries, Parliament and municipalities to discuss legal and financial mechanisms for energy efficiency programs.
• exchange views energy policy being developed under the Heat Strategy Project in Moldova.
• compare situations in Moldova, Poland, and Lithuania, and get feedback on further restructuring activities to be included in the District Heating Program, Phase II.
• establish contacts with municipalities to promote partnerships between cities, establish professional contacts for future exchange of information, and
• disseminate information to a broader Moldovan audience upon return to Moldova.

The 10-day tour covered the following topics: legislation and energy structure, municipal structure and responsibilities, housing maintenance companies and residents, the role of condominiums in municipalities, experience of investment and development projects, case studies, optimization of heating systems for energy saving purposes, energy tariff structures, restructuring and privatization of DH companies, major investment projects and networking among cities. Following the study tour, the Alliance organized a press conference in Chisinau to summarize the positive results of this activity. A summary report is available upon request.

Work with Consumers in Chisinau: the Alliance in collaboration with National Agency for Energy Conservation and National Association of Housing and Real Estate Services published 2 informative booklets informing consumers on easy energy-saving tips, heat metering, low-cost weatherization techniques (window caulking, weather stripping, radiator guards, door sweeps, etc.) which were distributed to all homeowner associations in Chisinau, schools and interested organizations. The booklets provided the contact numbers of the local Alliance office and NAHRES for consumers who want further information. Copies in Romanian and Russian are available upon requests.

Media outreach: ASE produced a video on How to Save Energy and played the film on the 1st Russian channel ORT as of April 26 and on National Moldovan Channel as of May 25. The film was played over 100 times through 2 months. To get a bigger outreach across the country the ASE will resume the playing of the video in fall, 2002 before the heating seasons starts.

Heat Sector Development Project

About 75% of the urban dwellings in Moldova used to be connected to the various types of district heating systems, such a larger centralized district heating systems or smaller local networks. In the past, this industry was thereby able to satisfy the heating needs of about ? of the whole urban population. However, in the last year district heating companies had to reduce substantially their heat supply due to financial crisis that affected the district heating companies seriously.

Lack of finance is one of the main reasons of the crisis in the heating sector. There is an urgent need to open the sector for alternative heating options, encouraging and awarding private sector participation, and increasing the consciousness and the responsibility of final consumers to pay for the heating services. This requires that the consumer will receive a reliable heat service, which can be regulated in accordance the actual demand and financial capabilities. Relationships between heat supplier and customers and final consumers have to be based on contract endowing both sides with the needed liabilities but also with the appropriate powers.

Phase I one of the Moldova Heating Sector Development Project outlined some of the basic directions in which national policy and local practice need to go in order to address the country's critical heating situation. The Alliance to Save Energy and its consultants recommended an approach that included a new national policy, followed by targeted interventions to accelerate the implementation of that policy. The first step, drafted under Phase I, was a National Heat Law, currently under consideration by the Government and the National Heat Strategy approved earlier in 2003.

The further steps, that have been currently undertaken within the Phase II include the necessary legislation adjustments in order to put the heat law into practice. The major provisions of the new Heat Law and Strategy include:

• Pricing and tariff reform, as well as reforms in metering, heat cost allocation, billing and revenue collection;
• Housing reform, including clear definition of property limits between the housing association and heat supplier, as well as provisions to require the creation of associations in all multifamily buildings;
• Encouraging improvements in the management of heat companies, such as setting up customer relations departments;
• Clarity in the regulations about when and how heat suppliers can cut off non-payers, as well as the rights of consumers when heat supply is inadequate;
• Implementation of social assistance reforms to shield the most vulnerable citizens from the negative impacts of heat sector reforms.

The Heat Strategy prepared in Phase I also indicated where district heating systems should be upgrades and where they should be abandoned in favor of decentralized systems. Phase II continues in this direction, giving guidance to local governments in terms of which direction they should go - central or decentralized heating.

The ultimate objective is to encourage private and bank investment in rehabilitating the heating infrastructure, which will be impossible if the investor/lender has little confidence in the ability of either the supplier or consumer to repay energy efficiency improvements. The result should be an increase in confidence on the part of those willing to invest in district heating upgrades and a gradually increasing ability of local heat suppliers able to raise capital from domestic and international sources.

Browse MUNEE Moldova Fact Sheet for readily-available information on the program.

Contact: Tatyana Lujanskaya
Tel: +(373-22) 20 00 90
Fax: +(373-22) 21 40 07

E-mail: tlujanskaya@ase.org

This Project is being funded by the United States Agency for International Development