European Commission and Moldova Agree on 2-Year Energy Strategy to Boost Independence

The European Commission and the Republic of Moldova announced a comprehensive 2-year strategy aimed at enhancing Moldova’s energy independence and resilience. The agreement has a two-fold objective: to reduce Moldova’s reliance on Russian energy supplies and to fully integrate the country into the European Union’s energy market.

As part of this strategy, the EU will provide €250 million in support for 2025, with €100 million to be allocated by mid-April. An additional €60 million will be made available to support residents in Moldova’s Transnistrian region, contingent upon steps being taken to address human rights and fundamental freedoms in the area.

Short-Term Measures to Address Energy Costs

The immediate focus of the support package is to alleviate the impact of rising energy prices on Moldovan households, particularly those on the Right Bank. This includes compensation for excess electricity costs up to 110 kWh per month for households through to December 31, 2025. A hardship fund will also be established to help vulnerable households, and all electricity cost increases for social institutions, such as schools and hospitals, will be covered.

Additionally, €15 million will be directed toward easing the energy bills of agro-food and manufacturing businesses, while €50 million will support energy efficiency investments in public institutions, households, and SMEs through international financial institutions.

Support for the Transnistrian Region

The EU’s strategy also includes a €60 million funding offer to assist over 350,000 people in the Transnistrian region. This follows Gazprom’s discontinuation of gas supplies to the region, leaving residents without heating in January. The aid is conditional upon progress in addressing human rights concerns in Transnistria, and excludes energy-intensive activities.

Long-Term Strategy for Energy Transition

The EU’s commitment extends beyond immediate relief. In the long term, the strategy aims to strengthen Moldova’s energy security through investments and reforms designed to phase out Russian energy resources. This package continues the work initiated by the EU and other partners to reduce Moldova’s energy vulnerability, ensuring that the country’s energy system remains stable without blackouts.

Three-Step Approach to Energy Resilience

The strategy is structured in three key phases:

1. Phase 1: The EU has already provided €30 million in emergency support, with €10 million allocated to purchasing electricity on the European markets for the Right Bank and €20 million for gas purchases in Transnistria.
2. Phase 2: €100 million will be delivered by mid-April to further assist Moldovan consumers with energy bills and provide additional support to Transnistria, contingent upon human rights actions.
3. Phase 3: The EU and international partners will fund actions to improve Moldova’s energy resilience, focusing on sustainable investments and lower energy costs. These actions will be incorporated into Moldova’s Reform Agenda under the Moldova Growth Plan, which will continue until the end of 2026.

Ongoing EU Support for Moldova’s Energy Sector

This new strategy follows years of EU support to Moldova’s energy sector. Since 2021, the EU has provided €240 million in direct budget support to Moldova’s energy system, benefiting over 750,000 households. The EU also mobilized €67 million in grants, resulting in over €640 million in investments for energy efficiency and green energy transition projects.

Furthermore, Moldova’s power system has been connected to the European continental electricity network since 2022, and EU support has helped the Right Bank fully diversify away from Russian gas supplies.

With these efforts, Moldova is poised to achieve greater energy security and resilience, moving closer to full integration into the EU energy market.