Author: Power Peak Digest Team Pub Date: February 6, 2025
The European Commission (EC) and the Republic of Moldova have agreed on a two-year strategy aimed at strengthening Moldova’s energy independence and resilience.
The strategy includes a €250m ($258.7m) financial support package for 2025, implemented in three phases to address both immediate and long-term challenges.
The initiative’s primary goal is to reduce Moldova’s reliance on Russian energy supplies and integrate it fully into the European Union (EU) energy market.
The first phase began with a €30m EU emergency support package announced in January 2025. The second phase will see an additional €100m provided by the EU by mid-April, focusing on alleviating energy costs for consumers. This includes subsidizing electricity costs for households (up to 110 kilowatt hours (kWh) per month) until December 31, 2025, as well as creating a hardship fund for vulnerable households and social institutions.
Additionally, €15m will support agro-food and manufacturing businesses with energy bills, while €50m from international financial institutions will fund sustainable energy efficiency projects.
€60m is allocated to support 350,000 people in the Transnistrian region, who were left without heat in January 2025 after Russia’s Gazprom cut off their energy supplies. This funding is contingent upon improvements in fundamental freedoms and human rights in the region and does not cover energy-intensive industries.
The third phase will focus on financing actions and investments aimed at enhancing Moldova’s energy resilience and independence, with implementation expected through the end of 2026.
This comprehensive energy support package is part of the EU’s broader support for Moldova, with the Moldova Growth Plan aimed at boosting the country’s economy and aiding its EU accession ambitions.