August 2, 2024

Solar Power Plants Above 20 MW to Undergo New Approval Process in Moldova

In a move to accelerate its green energy transition, Moldova’s Cabinet of Ministers approved a new regulatory framework in July 2024 for the construction and expansion of power plants exceeding 20 MW. Spearheaded by the Ministry of Energy, this updated regulation is designed to enhance transparency and predictability for investors in large-scale renewable energy projects, particularly those operating on the free market without support schemes.

Solar Power Plants Above 20 MW to Undergo New Approval Process in Moldova: Streamlining Project Authorization

The new procedure centralizes project evaluation within a dedicated Authorization Commission. This body is tasked with assessing applications based on several key criteria, including technical credibility, the feasibility of grid connection, land suitability, and overall alignment with Moldova’s national energy policies. According to Energy Minister Victor Parlicov, this will provide greater certainty for investors while ensuring new capacity contributes effectively to the country’s strategic goals.

Following a positive evaluation by the commission, an application proceeds to a vote by the cabinet ministers. Once approved, the government’s decision to authorize the installation or expansion of a power plant remains valid for a period of 60 months, providing a clear timeline for project development. This process, however, does not apply to generators that are approved through competitive tenders.

Moldova’s Current Energy Mix and Future Goals: Solar Power Plants Above 20 MW to Undergo New Approval Process in Moldova

This regulatory reform comes as Moldova works to expand its domestic energy production. As of 2023, renewables constituted just 6% of the nation’s electricity consumption. Wind power was the largest contributor at 54% of that total, followed by photovoltaic generation at 34%, with hydropower and biogas accounting for the remainder.

To boost these figures, the government announced its first renewables auction for 2024, targeting the procurement of 105 MW of wind capacity and 60 MW of solar energy. These capacities, which are currently capped due to consumption structure limitations, are anticipated to be commissioned by 2025 as part of a broader strategy to meet national renewable energy targets.

Incentives and Support for Green Energy: Solar Power Plants Above 20 MW to Undergo New Approval Process in Moldova

Beyond streamlining approvals, Moldova has established three key support mechanisms to foster investment in green energy. These initiatives guarantee the purchase of surplus electricity fed into the grid, helping producers recover their investments and ensure financial stability. The mechanisms include:

Net Metering: For small-scale producers with installations primarily for self-consumption.
Feed-In Tariffs: A 15-year guaranteed tariff for solar parks up to 1 MW and wind farms up to 4 MW.
Fixed Prices: A 15-year fixed price for larger projects with capacities awarded through auctions.

By combining a more efficient authorization process with robust financial incentives, Moldova is creating a more attractive environment for renewable energy development, aiming to advance its energy independence and contribute to global climate objectives.

Sources

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Solar Power Plants Above 20 MW to Undergo New Approval Process in Moldova