Moldova Spurs Efforts to Improve Sustainability and Energy Security


Moldova Spurs Efforts to Improve Sustainability and Energy Security

Like other countries in the Black Sea region, Moldova is working to shift toward a cleaner and more diverse energy portfolio, aligning with efforts to bolster environmental sustainability and energy security.

With support from the United States Agency for International Development (USAID), Moldovan officials have recently made progress in this direction. The Moldovan Parliament approved the Law on the Promotion of Energy from Renewable Sources.

Critical to Clean Energy
The law will help the country secure more clean domestic energy generation, thereby reducing greenhouse gas emissions. It will also increase competition among energy generators as Moldova transitions toward a more competitive, market-focused energy sector. As an aspiring EU member, Moldova’s move toward competition and clean energy aligns with EU regulations.

The National Agency for Energy Regulation of Moldova (ANRE) collaborated with NARUC, particularly with regulators from the Maine Public Utilities Commission, in developing the law. NARUC provided this support under a cooperative agreement with USAID. ANRE, an independent regulatory body, eventually proposed the law to the Ministry of Economy for government consideration.

Over several years, ANRE worked with NARUC, drawing from the experiences of Maine and other U.S. states that have successfully promoted small- to medium-scale renewable energy through net metering, bidding processes, and other policy mechanisms.

By doing so, ANRE was able to create a policy solution that met Moldova’s specific needs and goals, with NARUC experts providing their expertise on clean energy, regulation, and policy ideas during the drafting process.

A Focus on Renewable Energy
With NARUC’s assistance, ANRE also proposed a program to support greater opportunities for renewable energy. Under this program, electricity generated from renewable sources, such as solar panels, will be purchased by a designated supplier. All eligible power generators will be selected through a competitive bidding process, with a guarantee of purchase for 15 years.

ANRE also redesigned its certification process for renewable energy resources to include a guarantee of origin system, used to verify that the energy was generated by a renewable source. This is a key component of EU energy regulation, and Moldova’s compliance brings it in line with EU requirements. The new certification process simplifies it for consumers and market participants to know when their electricity was generated by a renewable source.

ANRE is now tasked with developing an updated regulation on guarantees of origin and standardizing the terms and conditions of energy purchase contracts. Additionally, officials must develop a regulation establishing auction rules and other provisions as dictated by the new law.

With its partners at USAID and in the region, NARUC is committed to assisting ANRE and other Black Sea regulators as they work to strengthen economic growth and secure their energy sectors.

This story is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of NARUC and do not necessarily reflect the views of USAID or the United States Government.

About NARUC’s Partnership With Moldova
With USAID’s support, NARUC’s partnership with ANRE aims to bolster Moldova’s energy security and integration into European markets. NARUC, in partnership with USAID, will continue leveraging its support for ANRE in critical energy market reforms and helping the country align its processes with EU Directives.