The European Commission and Moldova agreed on a two-year Comprehensive Strategy for Energy Independence and Resilience of Moldova on February 4, with support of €250mn for 2025, the European Commission announced in a press release. Another €60mn will go to the separatist Transnistria region to cover 70% of the energy consumption of households and social institutions.

The package was agreed after an energy crisis in Moldova was caused by Russian Gazprom’s decision to stop gas exports to the country at the beginning of January. Prior to that, Russia exported gas to Transnistria, which was used within the separatist republic, as well as turned into electricity to supply the whole of the country. 

For 2025, the two-year strategy envisages mostly the disbursement of subsidies to households, public institutions and small businesses, to compensate for the high electricity prices. One-fifth of the money, namely €50mn, will be available for sustainable investments in energy efficiency projects by local public authorities, households and SMEs.

It is not immediately clear what the two-year Comprehensive Strategy envisages for the second year.

“In the longer term, the EU support will allow Moldova to improve its energy security through investments and reforms for the energy transition and ensure the full phase-out of Russian supply of energy resources,” the press release issued by the European Commission reads, without indicating whether this relates to the second year or a continuation of the Comprehensive Strategy.

The long-term support for boosting Moldova’s energy security will be included in the Reform Agenda under the Moldova Growth Plan, and implemented until the end of 2026, the Commission says later in the press release.

Prime Minister Dorin Recean, quoted by Deschide, gave more detail on the aid to be disbursed in 2025. 

Firstly, it will be used for electricity compensation for the entire population of Moldova until December 2025. Each family will pay the first 110 KWh of the bill at the rate that was before the increase in energy prices. This aid will amount to a total of €151mn.

€15mn of compensation will be offered for businesses in addition to the aid provided by the government, which will allow for the compensation of 50% of the additional energy costs for the agri-food sector.

€20mn will be used to cover the energy price increase paid by the socially important institutions (schools, kindergartens, hospitals, social centres, etc.).

A further €50mn will be provided to finance energy efficiency projects implemented through the European Village, ODA and eco-voucher programmes.

The European Commission outlines the same scheme in a slightly different form, with three steps. 

In the first step, the Commission has already provided €30mn EU emergency support announced on January 27. €10mn will allow Moldova to purchase electricity on the European markets for the parts of Moldova under the control of Chisinau (not including Transnistria), which will help lower consumer prices. €20mn is being used for the emergency purchase of gas for meeting the basic needs of the population in the Transnistrian region.

The second step will entail €100mn in further financial support to  Moldova until mid-April to alleviate higher energy bills for consumers on the Right Bank. Additional funding of €60mn is also available to support the people of the Transnistrian region subject to steps being taken on fundamental freedoms and human rights.

According to Recean, the €60mn offered by the EU for Transnistria would cover the region's energy needs until mid-April. More specifically, the money would cover 70% of the social consumption that Transnistrians had until the crisis.

As well as taking action to respect human rights and fundamental freedoms, Transnistria would also be required to adopt a plan to gradually update energy tariffs to market prices for consumers in the region. Large companies that export products would have to pay market prices for energy, and Transnistria should exclude industrial consumers with high energy consumption from the support package, the prime minister said. 

Under the third step, the Commission and international partners will finance actions and investments in Moldova's energy resilience and independence as well as support to lower energy costs for all Moldovans. The actions will be included in the Reform Agenda under the Moldova Growth Plan and implemented until the end of 2026.