Moldova demonstrates a consistent and ambitious course in sustainable development amid accelerating transformation of energy systems in Europe and countries' aspirations to reduce their carbon footprint. In the absence of its own fossil resources, the country is focusing on energy efficiency, development of renewable energy sources, and integration into the European energy market.
Moldova's Energy Ministry plays a key role in implementing these priorities by not only forming strategic directions, but also implementing specific programs for modernizing infrastructure - from heat supply to housing. In parallel, Moldova is actively developing international cooperation, including with Azerbaijan - an important partner in the region and a potential supplier of natural gas, as well as an ally in the development of green projects.
In an exclusive interview with Report, minister of energy of the Republic of Moldova, Dorin Junghietu, spoke about the priorities of state energy policy, the prospects for Azerbaijani companies' participation in Moldova's energy initiatives, as well as opportunities for joint projects in renewable energy, biogas, and urban infrastructure modernization.
We present the interview to our readers:
- How do you assess the current state of cooperation between Moldova and Azerbaijan in the field of energy efficiency and renewable energy sources? Which areas do you consider the most promising?
- We have great potential for developing our bilateral relations, and I welcome the fact that in Azerbaijan, despite having hydrocarbon reserves, you show concern for energy efficiency and renewable energy. Moldova does not have fossil energy sources, and the only way to be competitive is to increase energy efficiency to reduce energy consumption in buildings, most of which were built according to Soviet standards and have low energy efficiency, use renewable energy sources, and integrate into the European market. To provide some context, I should note that in February, the National Energy and Climate Plan was approved - a strategic document that has been in development for almost two years. It defines national energy and climate goals, as well as specific actions needed to achieve them.
Thus, by 2030, the Republic of Moldova commits to achieving a national goal of 30% share of energy from renewable sources in final energy consumption, keeping final energy consumption below 2,762 kilotons of oil equivalent, as well as reducing greenhouse gas emissions on the right bank of the Dniester by 68.5% compared to 1990, or by 88% if additional measures are applied. The plan provides for annual energy savings of 0.8% of average consumption through the implementation of energy efficiency measures and new efficient technologies, installation of "smart" meters, and promotion of environmentally friendly and energy-efficient transport.
In this regard, we have launched a number of financing programs, such as the renovation of residential buildings with financial support from the Fund for Energy Efficiency in the Residential Sector in Moldova (FEERM), as well as programs for buildings of public institutions, hospitals, schools, universities, etc. In parallel, we are launching a large-scale program to modernize district heating systems, which will cover about 80% of multi-story residential buildings in Chisinau. There are plans to transition from vertical heat carrier distribution systems to more efficient horizontal systems with the installation of individual heat points in each building.
These projects not only help reduce energy costs and improve comfort for residents, but also open up significant business opportunities for the private sector. Given the limited scale of our market, we are particularly interested in foreign companies, including those from Azerbaijan, in participating in these processes.
- Is there a plan to sign new bilateral agreements or memorandums of understanding in the field of energy regulation, including standards and rules for market functioning?
- The Republic of Moldova is a candidate country for accession to the European Union, and we have a roadmap for implementing the acquis communautaire (EU legislation) with the aim of integrating into the single European market. Thus, any regulations and international cooperation in the energy sector will be based on these commitments of the Republic of Moldova.
- Are there currently negotiations underway for long-term contracts for the supply of Azerbaijani natural gas to Moldova?
- Of course, we are interested in diversifying the sources of energy resource acquisition, including natural gas, as this is part of the strategy to ensure the energy security of the Republic of Moldova. Long-term contracts provide predictability of purchase prices and the possibility of creating reserves for periods of increased consumption. Previously, there have been contacts both at the government level and at the corporate level with the Azerbaijani side with the aim of concluding commercial contracts. During my recent visit to Baku as part of the Southern Gas Corridor Advisory Council Ministerial Meeting, I discussed possible long-term cooperation with representatives of the Ministry of Energy and SOCAR company. We will be happy to announce the results of these discussions when they materialize into a full-fledged project.
- How realistic do you consider the use of the Southern Gas Corridor for stable and long-term supply of Azerbaijani gas to Moldova? Are there already specific mechanisms or supply routes?
- Yes, we consider this direction to be quite realistic and promising. We became the first country to use the Gas Interconnector Greece - Bulgaria (IGB) for commercial purposes, and one of the first to use the terminal in Alexandroupolis for LNG supplies. We have demonstrated the commercial viability of the vertical corridor by transporting gas to underground storage facilities in Ukraine. Even considering the risks associated with the war in Ukraine, we remain confident in the long-term viability of this model. We continue to support the common goals of energy security, sustainability, and market integration, and a transparent and unified tariff structure will make the Southern Gas Corridor more attractive for business and investors.
- Is the possibility of implementing joint projects in the field of biogas production being discussed with the Azerbaijani side? What resources, technologies, or forms of cooperation could be involved in such initiatives? Is Moldova interested in attracting Azerbaijani investments in the bioenergy sector? Are there already specific sites or projects that could be offered to potential investors?
- The biogas potential in Moldova has not yet been unlocked. We have only 7 MW of installed generating capacity. This is one of the expensive renewable energy sources, but it does not depend on weather conditions and is not intermittent.
Therefore, we are very interested in developing this sector and would welcome the participation of Azerbaijani companies in this process. Of course, it is also necessary to take into account all components related to raw material supplies and other operational aspects. But from our side we are ready to provide all the necessary information, assistance and expert support.
- Does Moldova plan to join the international Green Energy Corridor initiative? What benefits do you see for the country in this project, both in terms of energy security and regional integration?
- The issue of diversification of energy sources and routes of their delivery is key to Moldova's energy security. We are closely following the development of the Green Energy Corridor initiative and are certainly interested in the possibility of joining it. This project can become an important element of regional integration and strengthen the connectivity of energy systems between countries that share common goals in the field of sustainable development.
- How actively are Azerbaijani energy companies showing interest in participating in projects in Moldova? Which areas could become priorities for such interaction - solar energy, wind energy, hydrogen, bioenergy?
- In recent years, the development of solar energy has significantly intensified in Moldova. Photovoltaic installations have almost reached their potential, and interest in them remains high, especially considering that most of the investments were made without state support, on a free market basis. As for wind energy and bioenergy, the potential here remains significant. Moldova has extensive biomass resources, and this area is increasingly seen as promising for private investment. We are also open to the development of hydrogen energy, especially in the context of increasing generation from renewable sources. We welcome any investments from our Azerbaijani partners. Cooperation in these areas can bring mutual benefits and accelerate the green transition of both countries.
- Is Moldova planning to hold new auctions for renewable energy facilities construction in 2025? Is there interest from Azerbaijani companies to participate in such auctions, and what incentives or support mechanisms does Moldova offer to attract foreign investors?
- We are finalizing the evaluation of the results of the first tender for the construction of wind and solar power plants with a total installed capacity of 165 MW. A new hybrid tender is planned for the autumn, which will include both the installation of additional generating capacity from renewable sources and energy storage systems. Currently, specialists from the Ministry of Energy are analyzing the needs of the power system and developing technical parameters for the future tender.
In addition, the transmission system operator, Moldelectrica, will hold a separate tender this year for the provision of power system balancing services. The Government of the Republic of Moldova welcomes the participation of foreign investors, regardless of their country of origin. We are interested in attracting Azerbaijani companies and invite them with great interest to participate in future tenders. To support investors in the renewable energy sector, Moldova has three key mechanisms in place that ensure the guaranteed purchase of generated electricity and facilitate the return on investment.
Firstly, the net billing system, which replaced the previous net metering model on January 1, 2024, applies to small producers generating energy for their own consumption.
Secondly, a fixed tariff for 15 years - is provided to projects with a capacity of up to 1 MW (for solar generation) or up to 4 MW (for wind), without the need to participate in an auction.
Thirdly, a fixed price for 15 years, distributed through an auction - applies to projects with a capacity of more than 1 MW (solar) or 4 MW (wind). Additionally, companies can implement projects on free market conditions, without participating in competitive procedures.
We strive to ensure transparent and predictable conditions for all investors and expect that Azerbaijani business will become an active part of Moldova's energy transformation.