In 2010, the Republic of Moldova (hereafter “Moldova”) became a full-fledged member of the Energy Community, which implied a commitment to adopt core European Union (EU) energy legislation. This has been reflected in its National Energy Strategy (NES) for 2030 which has three key objectives: 

• Ensuring the security of supply of energ
• Developing competitive markets and their regional and European integration
• Ensuring sustainability of the energy sector and climate change mitigation.

In Moldova, the security of supply of energy is precariously based on either gas or electricity imports. The share of electricity in the total final energy consumption of Moldova in 2019 was 14.6%, which was the lowest amongst its immediate neighbours (Ukraine and Romania) as well as the other European Network of Transmission System Operators (ENTSO-E) members, except for Luxembourg. The majority of the remaining share of the energy mix was gas, almost all of which came from the Russian Federation (hereafter “Russia”) via Ukraine, in addition to petroleum products. Additionally, of the 3.9 TWh of electricity consumption in 2019, 81% was supplied from imports from either Ukraine or the Moldavskaya GRES (MGRES) gas-fired power plant located in Transnistria, a territory which is not under the control of the central authorities. The dominant share of domestic generation came from two cogeneration plants in Chisinau and Balti, respectively, which both relied on imported gas. 

The development of renewable energy (RE), and in particular RE electricity, could play a large role in achieving a more secure and sustainable supply of energy in Moldova which is clean and domestically derived. An added benefit would be the improvement in the negotiating position of Moldova in terms of the import prices of fossil fuels because of the development and diversification of its energy portfolio. Though it is estimated that Moldova has significant technical potential for wind and solar PV (IRENA, 2019), by the end of 2020, only 72.91 MW had been realised. All power systems have inherent flexibility which allows lower shares of variable renewable energy (VRE), namely wind and solar PV, to be integrated without any noticeable impact on the power system. However, in order to raise their renewable ambitions and significantly increase the share of variable renewables in the energy mix, Moldova will need to transform its electricity system into one that is modern and flexible. The increased deployment of renewables in Moldova would not only benefit the energy sector, but would also have significant positive socioeconomic and environmental benefits for the country including the following:

• Improving energy security, through maximising the consumption of domestic energy resources and reducing reliance on imported natural gas or other fossil fuels.
• Increasing formalised employment in the renewable sector, especially within rural areas where projects are developed.
• Reducing the health impacts from pollution related to both fossil fuel-powered electricity and transport.

With this in mind, the International Energy Agency (IEA) has produced the System Integration of Renewables for Moldova: a non-binding roadmap as part of the EU4Energy programme, a five-year initiative funded by the European Union. EU4Energy’s aim is to support the development of evidence-based energy policy design and data capabilities within the countries of the Eastern Partnership and Central Asia, including Moldova.

The central purpose of this document is to guide policymaking at all levels related to the increased system-friendly deployment of VRE and to ensure the cost-effective and reliable integration of these resources into the Moldovan electricity supply. This document also serves to support further development of the national renewable energy strategy. 

The cost‑effective and reliable integration of renewable energy, and in particular variable renewable energy (VRE) from wind and solar PV, into Moldova’s power system is an opportunity for transformation of its electricity sector to one that is less reliant on imports and also based on clean energy resources. The electricity sector and its associated sectors which fall under the jurisdiction of multiple government ministries and departments, include stakeholders from both the public and private sector. A co‑ordinated approach to policymaking, governance and market development is therefore required. The following section outlines the main actors in the Moldovan electricity and renewable sectors in the government, and also across other public and private institutions.

While responsibilities are split across various ministries and agencies, the Government of Moldova has a collective role in the development and implementation of RE policy in the country. The government is responsible for establishing the main priorities and realising the objectives of state policy in the field of energy from renewable sources. It is also key to establishing the manner in which activities in the RE sector are organised and managed, including the mechanisms, support schemes and incentives that drive renewable deployment.

The Ministry of Infrastructure and Regional Development (MoIRD), formed following a government reshuffle in August 2021, is the central body for the energy sector via its Energy Policy Directorate, and is responsible for the development and implementation of energy policy in Moldova. It has a central role in the development of the RE sector as it is responsible for developing support schemes and other incentives for renewables. It also proposes the capacity limits and maximum capacity quotas for RE, including by capacity categories, in connection with the implementation of the aforementioned support schemes, which are then approved by the Government.

The Energy Efficiency Agency (EEA) is an administrative authority subordinated to the Ministry of Economy and Infrastructure, with a wide ranging role in the dissemination of information about the renewable sector to the public, local and regional planning authorities, and relevant actors in the renewable sector. This includes developing programmes, with the participation of local and regional authorities, to inform the public of the benefits and practicalities of developing and using energy from renewable sources. The EEA also ensures that information on support measures is made available to all relevant actors, such as consumers, builders, installers, architects and suppliers of heating, cooling and electricity equipment and systems and of vehicles compatible with the use of energy from renewable sources.

The National Energy Regulatory Agency (ANRE) is the state regulator for the energy sector in Moldova. Within this role it provides regulation and monitoring of electricity markets and all activities within the electricity sector, including RE. This includes the calculation and approval of feed-in tariffs (FiTs) for support schemes of small renewable plants. For investment into larger renewable plants, a tendering scheme is envisaged whereby ANRE will propose a ceiling price for tenders. ANRE is by law set up as an institution legally distinct and functionally independent from any other public entity. Its main responsibilities include licences, price/tariff setting and regulation.

The Moldovan Investment Agency is a co‑operation partner for domestic and foreign investors in development projects, including renewable projects.

The Ministry of Finance is the specialised central public administration body to develop and promote the state's public finance policy. As the main public finance supervisor, the Ministry of Finance ensures the regulation and implementation of Public Finance Management policies.

The Ministry of Environment is responsible for developing environmental and natural resource management policies and strategies, as well as for implementing international environment treaties. In relation to wind and solar deployment, this includes the management of land-use practices for the development of these plants. It is also responsible for the joint preparation (with MoIRD) of the National Energy and Climate Action Plan. 

There are multiple public and private actors in the electricity and renewable energy sectors in Moldova. These include domestic electricity production companies which include larger combined heat and power plants (CHP) plants (Termoelectrica, CHP-Nord), Cotesti hydropower plant and several smaller private companies that include CHPs in the sugar industry and small renewable electricity plants. In addition, the largest generation company of relevance to the Moldovan electricity system is Moldavskaya GRES (MGRES), a subsidiary of the Inter RAO UES, located in the breakaway region of Transnistria.

Electricity supply in Moldova is dominated by gas-fired generation, including CHPs, and imports from MGRES. Moldovagaz JSC, a vertically-integrated company and monopoly supplier of Russian gas controlling the entire chain of gas business outside of direct supply to consumers (import, transit, transmission, wholesale supply and distribution and retail supply) operates under high financial risk. In addition to supplying gas to domestic plants, it also supplies the gas from Gazprom to Transnistria without being paid. The resulting debt accumulation of Moldovagaz to Gazprom at the end of 2019 was USD 6.8 billion (Moldovagaz, 2020), which makes it incompatible with the “going concern” principle, whereby it needs to make have enough revenue to avoid bankruptcy. In its current financial health, its operation can be legitimately seized at any moment.

Moldovatransgaz LLC is the operator of the gas transmission system of Moldova that is responsible for the maintenance and operation of main gas pipelines and their facilities.

SE Moldelectrica is the state-owned single power transmission system operator (TSO) of Moldova, which specialises in centralising the transport services and operative dispatching of the electricity system. SE Moldelectrica manages the internal transmission network on the right bank of the Nistru River.

Electricity distribution in Moldova is comprised of two distribution system operators (DSO). RED North is 100% state-owned while Premier Energy Distribution is privately owned. The latter covers about 70% of the territory of Moldova (excluding the territory left of the Nistru River). Furnizare Energie Electrică Nord (state-owned) and Premier Energy Furnizare (privately owned), both sell electricity at regulated prices and act as suppliers of last resort in their respective supply areas.

There are also a number of electricity suppliers which sell electricity at non-regulated prices through the wholesale electricity market. Energocom JSC, which is also the designated Central Electricity Supplier and single buyer for both renewable and cogenerated electricity, is a state-owned electricity supplier and trader on the wholesale market. In the past, it has also participated in tenders to manage electricity annual import contracts with Ukraine and MGRES. It also covers imbalances for eligible producers of renewable electricity. While another 43 suppliers are currently licensed by ANRE, a large part of these suppliers are not active on the electricity market. In 2019, the share of electricity sold by retailers on a competitive market was 7.4%, with this share then increasing to about 9.6% in 2020 (Moldelectrica, 2021a).

In 2013, Moldova adopted its National Energy Strategy (NES) for 2030. The NES, which is currently under revision, was driven by three main objectives:

1. Ensuring the security of energy supply.
2. Developing competitive markets as well as their regional and European integration.
3. Ensuring sustainability of the energy sector and climate change mitigation.

In 2010, Moldova became a full-fledged member of the Energy Community, which implies a commitment to transpose core EU energy legislation. Since then, governmental efforts have been focused on aligning the national legal framework for energy with that of the EU. Moldova has successfully adopted legislative and regulatory acts which transpose the Third Energy Package at the level of primary legislation. However, the progress in adopting the secondary legislation and the actual implementation of the Third Energy Package provisions have been uneven across various sub-sectors, as discussed later in this section.

Efforts have also been made to adjust national legislation in the field of renewable energy and energy efficiency, and to diversify gas supply routes. Most of the RE-related legislation has been transposed except for provisions relating to biofuels and bioliquids that are produced or placed on the market.

In 2016, Moldova signed the Paris Agreement on climate change and ratified the agreement in June 2017. In its Nationally Determined Contribution (NDC) document, Moldova set an unconditional target of reducing national GHG emissions to 64-67% below the 1990 level by 2030. In March 2020, Moldova submitted its revised NDC to the United Nations Framework Convention on Climate Change (UNFCCC), becoming only the fourth country in the world to do so at the time. With this second NDC, the country increased its ambition and committed to unconditionally reducing GHG emissions by 70% below its 1990 level by 2030 and by up to 88% while receiving technical, financial and technological support from the international community.

In 2020, Moldova had binding renewable targets for both gross national energy consumption and individual sectors (electricity, heating and transport). Preliminary statistics for 2020 estimate that Moldova had a 23.56% share of energy consumption from renewable sources, which was above the 17% target for 2020 (IEA, 2021b). However, this was achieved mostly through the revision of biomass consumption data for the years 2010-2016. As a result, the achievement of this target does not accurately reflect the progress made by the country towards the transition to renewable sources. In addition to the target of 17% of total energy consumption from renewables, the target also includes sector-specific non-binding targets of 10% of electricity consumption, 27% of heat consumption and 10% of fuel consumption for transport to come from renewable sources. The MoIRD and the Energy Community have started discussions on adopting new RE targets for Moldova in the frame of the National Energy and Climate Action Plan development exercise.

Currently, high expectations are set for the implementation of the Law on the Promotion of the Use of Energy from Renewable Sources,##anchor1## which entered into force in 2018. This Law provides support mechanisms for the so-called eligible producers of RE. There are three support levels according to the project size: net metering for plants up to 200 kW, administratively-set FiTs for small-scale projects and auctioned fixed prices for larger projects. The central electricity supplier Energocom has an obligation to purchase all eligible renewable-generated electricity for 15 years at a determined tariff/price. Eligible producers also benefit from non-discriminatory grid connection and priority dispatch. The law is expected to lead to the construction of up to 168 MW of new capacity, mainly wind and solar PV (by 2020), while the period between 2021 and 2025 will be subject to a different Government Decision that is currently under public consultation.