The country, which covers an area of 33,843 square kilometers, is about the same size as Belgium and has a population of less than three million. It used to be heavily dependent on Russian energy imports, especially gas and electricity from the pro-Russian separatist region of Transnistria.
In order to make itself less dependent on Russia, the country is focusing on making its energy supply as renewable as possible and promoting the efficient use of energy, emphasized Carolina Novak, Secretary of State in the Moldovan Ministry of Energy recently at CISOLAR 2024 in Bucharest. The government is trying to encourage appropriate investments through targeted incentives.
The first renewable auction for PV and wind was recently launched. Successful investors receive fixed price guarantees for the electricity generated for a period of 15 years. The tendering phase runs until March 31, 2025.
First tender for 60 MW PV and 105 MW wind
The first tranche includes 60 MW of photovoltaics and 105 MW of wind power. The capacity limit for solar parks is 1 MW and for wind parks 4 MW. The ceiling prices for wind power is 77.88 €/MWh and for solar 86.7 €/MWh. The guaranteed fixed price will be determined through the auction procedure, but cannot exceed the ceiling price. Operational power plants can participate in tender, if the equipment is not older than 36 months from the commissioning date of the power plant. Also, large producers of renewable energy that win the auction will receive prioritized grid connection permits. The National Agency for Energy Regulation (ANRE) is the competent authority for the tenders.
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“Through this auction, we aim to offer local and international companies the opportunity to invest in the Republic of Moldova,” said Minister of Energy Victor Parlicov. Private investment of €190 million is expected, along with an increase of almost 8% in the share of renewables in the national electricity mix, one year after the plants that have been awarded contracts go into operation. At the end of 2023, renewables accounted for 10.5% of national electricity consumption. In 2030, renewables are expected to contribute 30% to the national electricity mix and 27% to final energy consumption.
Solar potential of over 4.5 GW – promotion of energy efficiency
According to the International Renewable Agency (IRENA), Moldova had 87 MW of cumulative installed solar capacity by the end of 2023, up from 60 MW in 2022. Moldova has significant renewable energy potential, with estimates of 20,868 MW for wind energy, 4,648 MW for solar energy, 840 MW for hydro energy, and 850 MW for biomass.
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Moldova aims to reduce its greenhouse gas emissions by 68.6 percent (compared to 1990 levels) by 2030 according to the National Energy and Climate Plan (NECP). To achieve this, the government is focusing not only on investment incentives for renewable energies but also on energy efficiency. Primary energy consumption is to be limited to under 3,000 kilotons of oil equivalent (ktoe) and final energy consumption to under 2,800 ktoe.
Ministry of Energy of the Republic of Moldova
Secretary of State Novac, also stresses on the importance of the Energy Efficiency Fund in the residential sector, which foresees that in the next three years, about 507 thousand square meters of housing, of which about 75% residential buildings and 25% individual houses, will undergo renovations that will bring energy savings of up to 40%.
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“It is very important for us as a country, not having fossil energy sources, to reduce energy consumption as much as possible, and residential consumption accounts for 49 percent of the total energy consumed in Moldova. Energy efficiency measures are aimed at reducing our dependence on these resources that we import, we are committed to launching some programs and to give a boost to the national economy, to attract as many people as possible in this sector,” State Secrectry of the Moldovan Ministry of Energy, Novac says.
Whole package of measures for the energy transition
Further measures to establish a climate-neutral and secure energy supply in Moldova include incentives for battery storage, pumped storage, biogas and energy generation from waste to stabilize the grid and for dark, cloudy days, the promotion of energy sharing and energy communities, and grid expansion and digitization.
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The country is counting on closer integration with the EU, which was recently enshrined in the constitution by popular vote. Moldova also intends to join the International Solar Alliance (ISA), which brings together 98 countries committed to expanding solar energy projects. (hcn)
