The Government of Italy, through the United Nations Development Programme (UNDP), is providing an additional €14 million to strengthen social protection systems and enhance energy resilience in the Republic of Moldova. With a focus on digitalization, inclusion, and sustainability, the support targets five key areas: enhancing the efficiency and resilience of the social protection system, including the renovation of specialized public infrastructure; continuing support for the “Ajutor la contor” energy compensation during the cold season programme; expanding smart metering to reach 100,000 meters; promoting renewable energy; and strengthening the cybersecurity of the energy sector.

This new financing arrangement between Italy and UNDP, signed on 12 June 2025, complements the €20 million already committed in November 2023 and January 2025.

“This new commitment further consolidates Italy’s support for Moldova’s efforts to protect its most vulnerable citizens and to move forward with its reform agenda,” stated Lorenzo Tomassoni, Ambassador of Italy to the Republic of Moldova. “Through this partnership, we are supporting tangible improvements - from energy compensation for low-income households to the digitalization of essential services - which are crucial for Moldova’s European integration and long-term stability. We commend Moldova's pro-European5 ml Government for its efforts and results in improving the quality of living of Moldova's people.”

“This funding allows us to scale up a highly targeted and impactful intervention,” added Pietro Pipi, Head of Office at the Italian Agency for Development Cooperation (AICS), Kyiv Regional Office for Ukraine and Moldova. “We are investing in the renovation of inclusive social service centres, the expansion of smart metering, and the support to energy-vulnerable households through the Energy Vulnerability Reduction Fund. These are not abstract priorities, they are real tools to reduce inequality, improve efficiency, and deliver public services that are fit for the future.”

“We welcome the additional support provided by the Government of Italy, which will accelerate the digitalization of the energy and social protection sectors—key pillars for ensuring a better life for all people and access to reliable and affordable energy. These efforts are closely aligned with the Republic of Moldova’s reform agenda and long-term development priorities,” noted Daniela Gasparikova, UNDP Resident Representative to the Republic of Moldova.   

Thanks to Italy’s financial contribution, two regional social service centres will be renovated and equipped based on a modern one-stop-shop model, integrating energy-efficient technologies and user-centred design principles. This intervention will reduce administrative costs, improve service quality and ensure accessibility for all population groups, including persons with disabilities.

Italian support also targets the Government’s energy compensation programme, “Ajutor la contor”, by ensuring the continued operation of the Energy Vulnerability Reduction Fund (EVRF) and the dedicated Call Centre—both supported by Italy since 2024—and by providing direct compensation to energy-vulnerable households. For the 2024–2025 heating season, Italy is contributing €5 million to the EVRF.

“We have a special relationship of friendship and support with the Italian Republic, which unconditionally supports us on our European path and in implementing actions to strengthen social protection for our citizens. I am also grateful to the Government of Italy for its continued and much-needed support over the years in ensuring the sustainability of the energy compensation programme during the cold season. This is the largest and most complex government programme — one that demands significant dedication, commitment, accuracy, ongoing communication with citizens, and, above all, the financial resources necessary to support the most energy-vulnerable households. Mille grazie, cari amici!”, said Alexei Buzu, Minister of Labour and Social Protection of the Republic of Moldova.

Moreover, Italy’s additional financing will enable the Ministry of Energy to expand its smart metering pilot programme.  By the end of 2027, the number of smart meters installed will reach 100,000—covering 7% of the country’s 1.4 million electricity consumers. Between 2023 and 2025, 35,000 smart meters were delivered to distribution operators and are being installed this year in the North and Central-South distribution zones. An additional 25,000 smart meters are planned for installation by the end of 2026, followed by another 40,000 by 2027.

This initiative contributes to a more resilient energy infrastructure and supports more efficient demand-side energy management. It also empowers consumers to monitor their usage patterns and reduce electricity costs by adjusting consumption behaviour.

"Smart meters, installed with the support of the Government of Italy, are a key element in introducing time-of-use electricity tariffs and shaping consumer behavior, helping to reduce consumption during peak hours and lower household electricity bills," declared Dorin Junghietu, Minister of Energy.

With support from Italy and UNDP, the Republic of Moldova will also implement an integrated set of measures to enhance cybersecurity and climate resilience in the energy sector. These include equipping energy system operators with real-time detection systems and implementing protective measures against cyber and climate-related risks. These efforts will help safeguard critical energy infrastructure in the context of accelerated digitalization.

The Government of Italy and UNDP will further support the establishment and operationalization of at least three renewable energy communities that will serve as models of best practice at both local and national levels. Energy communities allow households, public institutions, and private entities to collectively generate, consume, sell, and share renewable energy, lowering costs and increasing energy independence.