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 Portfolio Programme “Accelerating a Just Energy Transition in the Republic  of Moldova" has emerged. The Portfolio 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;
• Enhance access to finance for renewable energy and energy efficiency projects, enabling increased investments in sustainable energy solutions;  
• Advancement, testing, and implementation of innovative technologies at regulatory and technological levels via Sandbox approach (smart grid/metering, energy storage solutions, etc.); 
• Design pilot national programmes targeting households, aimed at promoting energy diversification and efficiency measures;
• Facilitate the adoption of low-carbon technologies and practices across economic sectors;
• Building evidence, promote and support research & innovation, in energy and climate-related field, fostering advancements of sustainable technologies and practices;
• Promote and facilitate the widespread adoption of green and clean business models by the private sector;
• Increase awareness and promote adoption of renewable energy sources and energy-efficient practices among households, communities, businesses, institutions, and others;
• Enhance knowledge and understanding of energy efficiency and renewable energy technologies among community members, businesses, government agencies, etc.;
• Enhance capacity of relevant government institutions and stakeholders to govern and lead the energy transition at both the national and local levels;
• 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;
• Increase expertise, technological, institutional, and enforcement capacities of key energy players to prevent major risks in current and potential future energy crises;
• Provide support for the implementation and enhancement of targeted compensation mechanisms aimed at assisting energy-poor households;
• 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;
• Develop and disseminate relevant knowledge products.