Moldova has established a new regulation for approving power plants over 20 MW, streamlining the authorization process for renewable energy projects operating on the free market without support schemes. The regulation is designed to improve efficiency and transparency, with an Authorization Commission now responsible for project evaluations.
New Approval Process for Large Power Plants
In a significant step toward energy reform, Moldova has established a new regulation for approving power plants that exceed 20 MW. Drafted by the Ministry of Energy, the policy is designed to streamline authorization for renewable energy projects, particularly those operating on the free market without a support scheme. Energy Minister Victor Parlicov emphasized that this will offer greater predictability for investors while ensuring new projects align with the state’s energy policies.
Under this framework, project evaluations will fall to Moldova’s Authorization Commission. The commission will assess each project’s technical credibility, compliance with state energy policies, the feasibility of its connection to the electricity grid, and the suitability of the required land.
Once the Authorization Commission accepts an application, it goes to a vote by Moldova’s cabinet ministers. If approved, the government’s decision to install or expand a power plant will be valid for 60 months. Generators approved under tenders are an exception to this procedure.
Renewable Energy Generation in Moldova
In January, the Moldovan government announced that the country would hold its first renewables auction this year. The plans include procuring 105 MW of wind energy and 60 MW of solar energy between April and July, with the auction results expected by the end of the year.
Wind and solar energy
However, renewable energy generation is capped in Moldova due to limitations in its consumption structure. Current allocations limit wind energy to 105 MW and solar farms to 60 MW, with these capacities expected to be commissioned by 2025.
As of 2023, renewables accounted for only 6% of Moldova’s electricity consumption. Wind power generated 54% of that total, followed by photovoltaic energy at 34%, with hydro and biogas making up the remaining 6%.
Unlike variable wind and solar, hydro and biogas-based energy provide continuous, reliable power, though biogas in particular remains an underutilized resource.
Support Mechanisms for Renewable Energy
To support green energy producers, the state has implemented three mechanisms that guarantee the purchase of surplus energy delivered to the grid, helping them recover their investments.
These include net metering for small producers with installations for private consumption; a 15-year Feed-In tariff for photovoltaic parks up to 1 MW and wind farms up to 4 MW; and a 15-year fixed price for larger parks and farms with capacities assigned through auctions.
These support mechanisms are intended to encourage investment by providing financial stability and predictability for producers. By guaranteeing the purchase of surplus energy, the state helps ensure producers can recoup their initial investments and operate sustainably.
Together, the new regulation and support mechanisms represent a significant step in Moldova’s transition to renewable energy. By streamlining the approval process and providing financial incentives, the government aims to attract more investment in renewable projects. This will not only help Moldova meet its energy and climate goals but also contribute to the global effort to combat climate change.
