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;
• 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,  Head-End System/Master Data Management integration (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:

Digital infrastructure for energy 

• National Programme for Digital Transformation of the Energy Sector of Moldova, developed and approved by the Government in October 2025. The Programme focuses on developing smart and interoperable digital infrastructure for the energy sector; implementation of a unified system to identify each electricity consumption point – to increase transparency and reduce losses; creating a National Energy Management Platform; installing 500,000 smart meters by 2030; and strengthening cybersecurity for the energy sector;
• Finalized and applied a sampling methodology for smart meters pilot project, developed jointly with the Ministry of Energy and distribution system operators, to ensure representative and equitable installation of smart meters;
• Between 2023 and 2025, 44,520 smart meters were installed to consumers in the North and Center-South distribution areas;
• Conducted a comprehensive technical gap analysis to support the adoption of advanced metering infrastructure (AMI), with participation of distribution operators, which created an enabling environment for enhancing digital infrastructure. Development of business processes for four system operators conducted (two suppliers and two distributors), in line with smart metering requirements and electricity market liberalization;
• Deployed a specialised Head-End System and Meter Data Management (HES/MDM) platform for the two distribution system operators. It remotely collects, validates and processes smart meter data, providing reliable consumption data for suppliers’ billing and supporting loss reduction and better grid management. This single, permanent system covers the first 100,000 consumers and will gradually integrate the entire national smart meter park as the national roll-out advances;
• Developed, with ANRE, the national electricity and natural gas offer comparison tool required by the Electricity Law. ANRE launched it in October 2026. Household and small consumers enter their annual consumption, location, consumer type and connection level, and can choose a differentiated (time-of-use) tariff profile. The tool then shows the estimated annual bill, the regulated price for their area and the potential savings from switching to the best available supplier offer;
• Developed a GIS platform that maps Moldelectrica’s transmission grid infrastructure, for integration into the national Register of Utility Networks managed by the Cadastre Agency. The platform gives a single, georeferenced record of the high-voltage network, supporting grid planning, construction permitting and protection of critical energy infrastructure;
• A public communication campaign on smart meter benefits implemented.

Cybersecurity of energy sector 

• Strengthened institutional capacities through training in 2025 of at 224 personnel from grid operators and relevant institutions on AMI operations, Head-End System/Master Data Management integration, and enterprise asset management;
• Supported 7 state-owned entities from energy sector to advance internal processes and policies on cybersecurity management; 
• Enabled Moldelectrica with cybersecurity related equipment needed for a secure interconnection to European Network of Transmission System Operators for Electricity ENTSO-E.

Energy efficiency & renewables

• Photovoltaic systems and electricity storage were installed in three district hospitals (Cimișlia, Anenii Noi, Strășenil), with the total capacity of 460 kW of solar panels and 160 kWh of energy storage;
• In coordination with the Ministry of Health and the National Centre for Sustainable Development, energy audits and renewable energy feasibility assessments were conducted for 12 medical institutions in 2025, covering a total of 25 buildings;
• 27 local information and awareness-raising events on the benefits of participation in energy communities were conducted, reaching 381 participants, of whom 62% were women.
• Technical support was provided for the drafting of legislation establishing a distinct legal form for renewable energy communities and expanding eligibility to public entities, including municipalities, schools and healthcare institutions.

Energy Vulnerability Reduction Fund 

• Mobilized development partner support for household energy compensation: During the 2023-2024 and 2024-2025 heating seasons, contributions from development partners financed 742,071 monthly household compensation payments, helping protect vulnerable households from rising energy costs;
• Expanded access to targeted social protection: During the 2025-2026 heating season, the EVRF supported 621,874 households, representing approximately 51% of households nationwide. Beneficiaries included around 404,000 retired persons, 353,000 children and young people, 23,500 persons with disabilities and 12,000 unemployed persons;
• Strengthened accessible and digital service delivery: UNDP supported the operation of the EVRF Support Unit and national call centre, including the deployment of 55 mobile teams to facilitate registration and outreach among underserved communities. The EVRF information and registration system was continuously enhanced, including updates for the 2026-2027 heating season and preparations for integration with the national eSocial platform;
• Improved targeting and policy analysis: UNDP provided analytical and technical assistance to refine compensation formulas, strengthen administrative data integration and eligibility verification, and develop a needs-based methodology for measuring energy poverty and informing future social protection and energy-efficiency policies;
• Demonstrated measurable poverty reduction: UNDP's 2026 impact assessment estimates that energy compensations reduced expenditure-based energy poverty by an average of 10.9 percentage points across the assessed heating seasons. In 2025, compensations also reduced estimated absolute poverty by 5.8 percentage points and food poverty by 4.8 percentage points.