VIDEO // Termoelectrica head: Old equipment will be replaced through strategic projects financed by World Bank and EBRD

The modernization of the capital’s energy infrastructure, through record investments of hundreds of millions of euros is becoming the central development pillar of the country’s largest district heating supplier. At a press conference held today, director-general of Termoelectrica company Iurie Razlovan announced that the priority is replacing equipment that has been in operation for over 40 years with modern systems capable of reducing the final consumer’s energy bill.

“The future of the centralized heating system is closely linked to three major investment projects supported by external partners. The largest investment package, worth 326 million euros, is financed by the EBRD and the EIB. It includes a 40‑million‑euro grant component for a pilot thermal rehabilitation project for approximately 60 buildings in Chișinău, which involves insulating them and switching to horizontal distribution of the heating agent,” Razlovan explained.

In parallel, through the STEAM project, over 200 schools and kindergartens will be equipped with Individual Heating Points (IHPs), a measure that will reduce consumption by up to 20%. At the same time, the PIESAC 2 project, financed by the World Bank, aims at installing new electricity generation units with a capacity of 55 MW.

“The modernization of the energy infrastructure in Chișinău is currently being carried out along three major strategic directions, financially supported by the main international development partners. The first important component is the PIESAC 2 Project, financed with the support of the World Bank, which seeks to increase production capacity by installing new internal combustion engines capable of generating 55 MW. At this stage, the initiative is in the offer‑evaluation phase, and the signing of the implementation contract is expected in the near future,” estimated Iurie Razlovan.

Another key initiative is the STEAM Project, which focuses on improving energy efficiency in the public sector by equipping approximately 200 schools and kindergartens with Individual Heating Points. This modern technology will allow much more precise heat regulation, ensuring a reduction in energy consumption of up to 20% within an implementation period of just one year.

“The most extensive transformation is supported by a massive investment package of 326 million euros provided by the EBRD and the EIB, which also includes a grant component of 40 million euros. This non‑refundable funding will finance a pilot thermal rehabilitation project for about 60 residential buildings in the capital. The program involves not only thermal insulation of the buildings, but also the transition to horizontal distribution of the heating agent, giving residents the possibility to manage their individual consumption and pay significantly lower bills,” the company’s director pointed out.

Profit on the rise and independence on the gas market

According to Iurie Razlovan, the balance sheet of the 2025–2026 heating season indicates a company in a phase of financial recovery and operational stability. Despite a harsher winter, which required the supply of 17% more thermal energy, Termoelectrica reported a net profit of 15 million lei, a significant increase compared to 3 million lei in the previous period. This performance also allowed a reduction in the gigacalorie tariff in February this year. A success highlighted by the head of Termoelectrica was the company’s adaptation to the free market. The enterprise has started purchasing natural gas through the commodity exchange, already securing contracts at competitive prices for the coming months.

“Even though we had a colder winter and registered some technical challenges in the network, including the nationwide power outage on January 31, our staff intervened promptly and professionally. We proved that Termoelectrica is a stable system, maintaining energy supply without major disruptions for citizens,” stated Iurie Razlovan.

Solution for lower bills

Data analysis shows an improvement in payment discipline, with the overall collection rate exceeding 95%. However, the company’s director insisted that real savings are achieved by modernizing the internal heating systems of residential blocks, which are currently often unbalanced and inefficient.

“Bills reflect actual consumption, and the internal systems of apartment blocks, which are often unbalanced, require urgent modernization. The system with horizontal distribution is the best solution, allowing owners to adjust their own consumption and achieve substantial savings. All our future projects are aimed at reducing consumption at the producer level and, especially, at the level of the final consumer,” summarized Iurie Razlovan.