EU4Energy: Transforming Moldova’s energy sector

Project duration

2017-2020

Budget

€1.5 million
EU4Energy
EU4Energy

Brief Description

An EU-funded project, “Support to the Modernisation of the Energy Sector in the Republic of Moldova”, is helping the country reform its energy sector, which has traditionally been heavily dependent on imports. Higher energy efficiency standards and enhanced energy security are expected, while Moldova’s commitments to the Energy Community and its Association Agreement with the EU are also being met.

Objectives

Why was this needed?

Moldova imports 98% of its energy, mainly from Russia and Ukraine, making it one of the riskiest countries in terms of energy security. An underdeveloped gas infrastructure and a lack of gas storage facilities that could alleviate sudden shortages of gas supplies, exacerbates the situation. In addition, Moldova’s energy mix is distorted towards natural gas, while the electricity market is 80% dependent on one power station.

Actions in brief

How is the project helping?

The EU is supporting Moldova’s efforts in a variety of ways. It contributes policy advice to the Energy Department across a range of big energy issues as well as providing advice to Government on the decisions emanating from the Energy Community programme. Analytical support is also being provided to develop a long-term scenario-driven Energy System optimisation model to assist the authorities to assess different national energy futures as well as to support the coming National Energy Climate Plan. Other activities have included the establishment of the Renewables Single Buyer (the Central Electricity Supplier) and advice on the Electricity Distribution Pricing methodology. 

The project has also led efforts to improve the deployment of Energy Efficiency across the country.  At a national level, assistance has been provided to Government to implement an energy efficiency programme in centrally-owned buildings, to develop the first energy efficiency obligations scheme and to help the government in strengthening a revamped energy efficiency agency.

At a local level, support is underway to assess city energy use in a number of municipalities (comprising over 100,000 citizens) that will facilitate future energy efficiency investments as well as provide capacity building-seminars across the country to facilitate the development of local energy efficiency plans.

The project, due to finish in 2020, will result in Moldova having a comprehensive energy policy in place, while international commitments with the Energy Community Treaty and Association Agreement with the EU will be fulfilled. In addition, the energy planning capacities of Moldova are expected to be fully functional. These changes will have a major impact on the improvement of the quality of life of Moldovan citizens.

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