European Commission and Moldova agree on a 2-year Comprehensive Strategy for Energy Independence and Resilience and immediate support with the energy bills

This article is brought to you in association with the European Commission.

Today, the European Commission and the Republic of Moldova have agreed on a 2-year Comprehensive Strategy for Energy Independence and Resilience of Moldova. It has a two-fold objective of decoupling Moldova from the insecurities of Russian supply of energy and fully integrating it in the EU energy market. Under this strategy, overall support for the Republic of Moldova would account to €250 million for 2025, of which €100 million will be provided by the EU by mid-April. In addition to this overall support, and as part of the same strategy, an offer of €60 million is made available for the people in the Transnistrian region of Moldova (the Left Bank) subject to conditions.

In the short term, the overall package will support Moldovan consumers who are facing steep price increases on the Right Bank. It will allow to compensate all excess electricity costs for all households for up to 110 kWh every month until 31st of December 2025. It will also include a hardship fund to alleviate the energy bills of the most exposed households and allow to compensate the entire increase of electricity costs for social institutions, including kindergartens, schools and hospitals. Additional funding of €15 million will be provided to support the energy bills of agro-food and manufacturing businesses. Furthermore, through the mobilisation of international financial institutions, additional funding of €50 million will be available for sustainable investments in energy efficiency projects by local public authorities, households and SMEs.

Under this strategy, funding of €60 million, is also available for the more than 350,000 people in the Transnistrian region who have been left in cold in January following Gazprom discontinuing energy supplies. This support is subject to steps being taken on fundamental freedoms and human rights in the Transnistrian region and excludes energy intensive activities.  

In the longer term, the EU support will allow Moldova to improve its energy security through investments and reforms for the energy transition and ensure the full phase out of Russian supply of energy resources. The package is a continuation of the work done by the European Union and partners to reduce Moldova’s energy vulnerability. Today Moldova’s energy system is providing electricity and heat without any blackouts.

A Comprehensive Strategy to ensure Energy Independence and Resilience

The Strategy will unfold in three steps to tackle both immediate needs and long-term challenges:

• Under the first step, the Commission has already provided €30 million EU emergency support announced on 27 January. €10 million will allow Moldova to purchase electricity on the European markets for the Right Bank, which will help lower consumer prices. €20 million are used for the emergency purchase of gas for meeting the basic needs of the population in the Transnistrian region.
• The second step will entail €100 million in further financial support to  Moldova until mid-April to alleviate higher energy bills for consumers on the Right Bank. Additional funding is also available to support the people of the Transnistrian region subject to steps being taken on fundamental freedoms and human rights.
• Underthe third step,the Commission and international partners will finance actions and investments in Moldova’s energy resilience and independence as well as support to lower energy costs for all Moldovans. The actions will beincluded in the Reform Agenda under the Moldova Growth Plan and implemented until the end of 2026.

The Comprehensive Energy Support Package is another demonstration of the EU’s strong support to Moldova. When adopted by the co-legislators, the Moldova Growth Plan should provide before the summer a first tranche to boost the county’s economy and to support its EU accession.

Background

Gazprom has not honoured its contractual obligations, stopping supplies of gas to the Transnistrian region of Moldova. As a result, a serious energy crisis has broken out with serious economic and social consequences for inhabitants in Moldova and a devastating impact on the livelihood of people in the Transnistrian region.

So far, the EU has already provided €240 million in direct budget support to Moldova’s energy system from 2021 to 2024 to help the most vulnerable people. In the 2023-2024 heating season, more than 750 000 households have benefited from compensation through the EU-supported Energy Vulnerability Reduction Fund (EVRF).

On January 27^th, the European Union (EU) has proposed a €30 million emergency assistance package in a first step to support the Republic of Moldova in tackling the severe energy crisis provoked by Gazprom.

In addition, since 2021, the EU has provided €67 million in grants which have mobilised more than €640 million investments through the international financial partners. These support Moldova’s energy efficiency in public and residential buildings and the transition to green energy. The EU also supports building capacity and piloting the Moldovan Residential Energy Efficiency Fund. Moldova has also benefitted from EU macro-financial assistance worth €295 million since 2023, of which €220 million was provided in loans and €75 million in grants. Among other priorities, the instalment focused on energy sector reforms.

Since 2022, Moldova’s power system has been connected to the European continental electricity network. On 1 December 2024, the export capacity from the EU to Ukraine and Moldova was increased from 1.7 to 2.1 GW, including 315 MW for Moldova. Later in December, an agreement was reached whereby Moldova could further benefit from capacities unused by Ukraine.

Furthermore, with the help of the EU, the Right Bank has been able to fully diversify away from Russian gas supplies in 2022, at the peak of the gas supply crisis. Since then, the Right Bank is exclusively supplied from EU gas markets.