On 29 July, the EU4Energy Governance project published a policy brief on the urgent need for electricity market reform in Moldova. It also issues key recommendations on the next steps to be taken in the reform process.
Electricity market reform – what is at stake?
Moldova’s energy security is at risk because of its limited interconnection to non-domestic suppliers and the lack of a robust domestic generation capacity. Further integration with the Ukrainian electricity market, interconnection with Romania, and the implementation of Energy Community legislation will improve transparency and integration of the Moldovan electricity systems with regional markets, providing fair prices and improving energy security.
How do Moldovan citizens benefit from electricity market reform?
Moldovan citizens are paying high costs in their energy bills. The supply of electricity from primarily one source places a financial burden on Moldovan citizens and slows down investments and economic growth in Moldova. Adopting and implementing legislation, removing all remaining restrictions on electricity trade, and allowing for a full Moldova-Ukraine market integration is of utmost urgency.
* The EU4Energy Initiative covers all EU support to improve energy supply, security and connectivity, as well as to promote energy efficiency and the use of renewables in the Eastern Partner countries Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. It does this by financing projects and programmes that help to reform energy markets and to reduce national energy dependence and consumption. Over the longer term, this makes energy supply more reliable, transparent and affordable, thus reducing energy poverty and energy bills for both citizens and the private sector.