Programme Summary:

The Republic of Moldova is currently facing a pressing development challenge characterized by the liberalization of the energy market and ensuring swift transition to green energy technologies and solutions. In addition, the energy crisis has had severe consequences, including high inflation, potential recession, and a significant decline in GDP. Moldovan households, particularly those in rural areas, women, and people with disabilities, have been disproportionately affected by energy poverty, with a substantial portion of their income dedicated to energy expenses. 

In response to these challenges, the Government, in collaboration with the UNDP, has implemented various interventions. One key milestone in addressing energy security is the establishment of the Energy Vulnerability Reduction Fund (EVRF). This fund aims to mitigate the impact of increased energy tariffs on energy-poor and vulnerable households, reducing their vulnerability to energy and income poverty. In addition, efforts have been made to address the energy crisis comprehensively. These efforts include the development of legislative and regulatory frameworks, capacity building of key energy stakeholders, awareness-raising campaigns, crisis communication strategies, and practical pilot initiatives. These interventions aim to tackle both the immediate challenges and the underlying causes of the energy crisis, setting the stage for a sustainable and equitable future. 

Recognizing the importance of a just energy transition in addressing the root causes of the energy crisis and ensuring a sustainable future, the programme “Accelerating a Just Energy Transition in the Republic of Moldova" has emerged. The programme's interventions have been carefully co-designed with energy stakeholders to ensure their relevance and effectiveness. It takes a systemic approach, considering the interconnections and interdependencies among various components of the energy system.
 

Objectives:

• Accelerate energy diversification and efficiency;
• Decarbonizing industries and economic sectors;
• Foster sustainable consumption patterns;
• Strengthen inclusive energy governance;
• Addressing energy vulnerability and promoting resilience.
   

Expected results:

• Enhance energy efficiency and/or foster renewable energy integration in buildings and modernization of the grid infrastructure including the installation of photovoltaic systems (up to 200 kW) into critical infrastructure such as public hospitals;
• Enhance access to finance for renewable energy and energy efficiency projects, enabling increased investments in sustainable energy solutions, including through capacity-building of at least 20 Homeowners Associations (HoAs) to access financing and manage energy-efficient retrofitting works, supported by the development of energy audits and/or technical design documentation as prerequisite products for financing;
• Advancement, testing, and implementation of innovative technologies at regulatory and technological levels in a Sandboxed regulatory environment;
• Deployment of up to 100,000 smart meters across residential and public consumers, enabling improved load management, accurate billing, differentiated tariffs, and behavioral shifts toward energy efficiency;
• Strengthened institutional capacities through training of at least 200 personnel from grid operators and relevant institutions on AMI operations, HES/MDM integration, and enterprise asset management (EAMS);
• Building evidence, promote and support research & innovation, in energy and climate-related field, fostering advancements of sustainable technologies and practices through cost-benefit evaluations and pilot assessments of Smart Metering Pilots, retrofit, adoptions of renewables evaluations, and energy behavior data collection;
• Increase awareness and promote adoption of renewable energy sources and energy-efficient practices among households, communities, businesses, institutions, and others via public awareness campaigns linked to EVRF and smart metering pilots;
• Enhance knowledge and understanding of energy efficiency and renewable energy technologies among community members, businesses, government agencies, etc. through deployment of smart metering dashboards, policy briefs, and other data-based intelligence;
• Enhance capacity of relevant government institutions and stakeholders to govern and lead the energy transition and digitalization of the energy system at both the national and local levels through technical assistance and operational support;
• Improve policy and regulatory frameworks for inclusive energy transition, as per Moldova’s commitments in the EU accession process, Energy Community Treaty and Paris Agreement;
• Enhance participation and representation of public with a focus on vulnerable, youth, marginalized and other groups, in energy decision-making processes through targeted outreach and inclusive engagement mechanisms;
• Provide support for the implementation and enhancement of targeted compensation mechanisms aimed at assisting energy-poor households such as the Energy Vulnerability Reduction Fund (EVRF);
• Conduct comprehensive evaluations and impact assessments to measure the effectiveness of energy resilience and efficiency measures, with a specific focus on energy access considerations and other including regular monitoring of EVRF impact and cost-benefit evaluations of smart meter deployment;
• Establishment of at least three renewable energy communities (RECs) across Moldova’s North, Center, and South regions, promoting community-led renewable energy generation and self-consumption;
• 250 individuals (local leaders, REC members, technical staff) trained in renewable energy technologies, REC governance, and financing models.
• Technical and financial support mechanisms piloted to reduce barriers for REC formation, especially for women-led or energy-poor communities;
• Cybersecurity and climate resilience of Moldova’s energy infrastructure strengthened through the establishment of a Coordinating Council for Energy Cybersecurity, tailored training for stakeholders, operationalization of risk mitigation strategies across at least 7 state-owned energy operators, and deployment of integrated solutions for real-time threat detection and climate-proofing of critical systems. 

Accomplishments:

• Between 2023 and 2025, 35,000 smart devices were delivered to distribution system operators, which are currently being installed this year in the North and Center-South distribution areas;
• Supported the Government to ensure an expansion with 25,000 additional meters, with installation and completion scheduled by 2026;
• Finalized and applied a sampling methodology, developed jointly with the Ministry of Energy and distribution system operators, to ensure representative and equitable installation;
• Conducted a comprehensive technical gap analysis to support the adoption of advanced metering infrastructure (AMI), with active participation of distribution operators, created the enabling environment for enhancing digital infrastructure, and successfully finalized the development of business processes for four system operators (two suppliers and two distributors) in line with smart metering requirements and electricity market liberalization;
• Advanced development of a real-time energy monitoring dashboard to support system operators and the Ministry of Energy in consumption analysis and planning;
• Conducted public communication campaign to inform consumers on smart meter benefits and tariff differentiation;
• Capacitated Homeowners Associations (HoAs) to access funds, plan and manage energy-efficient retrofitting in residential buildings;
• Provided support to the Government by operating a national call center and deploying 55 mobile teams to facilitate registration and outreach for underserved and digitally excluded populations;
• Enabled compensation for 194,670 energy-poor households through the EVRF mechanism during the 2023–2024 heating season, and for 381,541 households during the 2024–2025 heating season;
• Provided support to the Ministry of Labour and Social Protection to upgrade the Energy Vulnerability Reduction Fund’s system and aligned it for integration into the future national eSocial platform, which is designed to unify all social protection services into a single digital entry point for improved accessibility, efficiency, and data-driven service delivery;
• Assisted the Ministry of Labour and Social Protection in impact monitoring, communication, and data governance for the EVRF rollout.