Moldova Alternative Energy

Sector outlook

Moldova is dependent on energy imports for over 95% of its consumption. The country offers an interesting potential for the development of renewable energy and energy efficiency: its energy intensity is around 3 times higher than in the EU and the use of renewable energy is still limited.


Strategic direction/ specific schemes and incentives

The development of renewable energy and increased energy efficiency in residential, industrial sectors, transport and agriculture are among the priorities of the Moldova 2020 development strategy (2012). An adequate institutional framework was established with the adoption of the Energy Strategy until 2020 (2007), the National Program on Ensuring Environmental Security for 2007-2015, the Law on Renewable Energy (2007), the Law on Energy Efficiency (2010), the National Energy Efficiency Programme 2011-2020 and the Energy Efficiency Agency. A gradual approximation of the national legislation with the relevant EU acquis is underway.

  • Renewable energy law: increasing the use of energy produced from renewable sources up to 20% of the total gross domestic consumption and 10% of annual electricity production by 2020, feed-in tariffs established for a 15-year period;
  • Energy efficiency: planned gradual increase of energy efficiency by up to 20% by 2020, planned creation of an Energy Efficiency Fund;
  • Sustainable energy action plan launched by EBRD in 2011 in order to improve the environment for sustainable energy investments in various sectors of the Moldovan economy.


Business opportunities

Several foreign companies have expressed their interest in the renewable and energy efficiency industries in Moldova, some of which plan to create affiliates. Promising niches are mainly in the biomass sector.

  • Biomass: small-scale projects using agricultural residues. Potential to develop straw-fired heating systems for 100,000 private houses, biogas from agricultural wastes (sugar beet presses, etc.) and animal wastes for heating systems or for cogeneration plants, production of briquettes (solid fuels obtained in the process of compacting agricultural and industrial wastes, UNDP support) and pellets;
  • Wind power: 1,000 MW estimated potential;
  • Hydro power: small hydro power plant projects on the Dneister, Prut and Danube Rivers;
  • Solar energy: solar thermal projects such as solar thermal collectors for hot water or steam generation;
  • Energy efficiency: projects in residential sector, industry, transport and agriculture. Credit line for on-lending to local private companies available under EBRD’s Moldova Sustainable Energy Financial Facility (MoSEFF).


Some success stories

Mercando Green Technology (Switzerland) plans to launch the first biogas production plant in Moldova for a total estimated investment of EUR 25 million. The project will be located in the village of Tsarigrad in the district of Drochia. It will be implemented in partnership with local company BioEnerAgro.

Debut-Sor SRL (Moldova) produces sausages and meat products in Soroca. The company recognised energy efficiency as a viable cost reduction strategy, which will increase its competitiveness. With a MoSEFF loan of EUR 147,497, Debut-Sor invested in the replacement of several units in its production process. The new machines use less energy than the old ones and facilitate higher quality production. The company saves 23% energy and 11 tons carbon emissions annually. The payback period is 7 years.

The hotel Vila Verde in Ungheni was built in 1976 and was closed from 2003 to 2011. After undergoing a complete refurbishment, the hotel re-opened in the summer of 2011. The hotel now consists of 3 conference rooms and 58 guest rooms for the building rehabilitation. The company invested in one of the largest solar thermal systems in Moldova with a surface of 200 m2, in advanced condensing boilers and in building insulation. With these measures, financed with a MoSEFF loan of EUR 280,000, the hotel has reduced its energy consumption by 80% and its CO2 emissions by 133 tons per year.

Moldovan entrepreneur Eugeniu Scurtu purchased a pellet production technology for a total of MDL 500,000 (around EUR 30,000), of which MDL 200,000 have been financed in the framework of "Pare 1 + 1" programme implemented by ODIMM, the Moldovan public organisation in charge of the Business Portal for SMEs in Moldova.

One Network Energies (France) set up, in 2012, a new company in Moldova named Solartech Energy in order to bring its expertise to the Moldovan market. It specialises in solar solutions for both in-grid and off-grid power supply, and energy efficiency by using the technology of ceramic paint. Solartech Energy deployed a technical consulting staff to help customers through their R&D projects and established "Sun Academy" sessions in order to train local solar professional installers and providers.

Useful links and contacts

Chamber of Commerce and Industry of the Republic of Moldova

MIEPO

European Business Association in Moldova

Moldovan Sustainable Energy Financing Facility (MoSEFF)

Energy Efficiency Agency, in charge of supporting the development of energy efficiency and renewable
energy.

 

This publication has been produced with the financial assistance of the European Union. The contents of this publication are the sole responsibility of EUROCHAMBRES and can in no way be taken to reflect the views of the European Union.

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