Energy communities will contribute to the creation of a sustainable energy system in the Republic of Moldova

Policymakers, key energy sector players, development partners, local public authorities and civil society representatives gathered on May 27 at a national conference to discuss the potential for implementing energy communities in the Republic of Moldova and present legislative recommendations and public policy proposals aimed at applying this European mechanism in to ensure energy security at the local level. The event was organized in Chisinau by UNDP and USAID in cooperation with the Ministry of Energy, with financial support from Sweden and Denmark.

At the beginning of the event, Carolina Novac, Secretary of State at the Ministry of Energy of the Republic of Moldova, stated: “The main goal of energy communities is to promote energy autonomy through their own energy production at much more favorable prices, which is one of the basic mechanisms for increasing the competitiveness of the economy and creating new opportunities and jobs The Ministry of Energy, responsible for policy in this area, will ensure that the Regulation on energy communities developed by ANRE will meet the requirements. the ultimate intention is to have a useful mechanism that is understandable to all parties involved and easy to apply. Today’s initiative is a perfect example of synergy between donors, representatives of public institutions, system operators, local public authorities, citizens and businesses.

Event participants were introduced to new legislative changes promoting the use of energy from renewable sources, which transpose the EU definitions of energy communities into local legislation, as well as the principles, rights and obligations in their management. The changes were developed by the Ministry of Energy and recently approved, and the implementation mechanism for energy communities is expected to be finalized by the end of this year. To facilitate this process, UNDP recently organized a study visit to Austria and Slovenia for representatives of the relevant institutions. In doing so, they learned from the EU’s experience in implementing renewable energy initiatives, became familiar with EU legislation on energy communities, and collected good practices and feasible solutions that could be tested in Moldova.

“Diversification efforts, including exploring renewable energy sources, improving energy efficiency and supporting energy communities, are crucial to increasing Moldova’s energy security. In 2022–2023, Sweden, in cooperation with UNDP, supported over 50 local projects for municipalities and agricultural producers aimed at switching to green energy and implementing energy efficiency measures. These projects have delivered significant economic, environmental and social benefits, especially at a time of deepening energy crisis. By joining forces, community members can reduce their dependence on centralized energy suppliers, thereby increasing energy security and energy resilience,” said Katarina Fried, Swedish Ambassador to the Republic of Moldova.

During the event, the results of a study on potential legal barriers to the implementation of energy communities in Moldova, an analysis conducted by USAID, were presented.

“USAID believes that energy communities can play an active role in the energy transition. Achieving energy security and environmental sustainability starts with each of us. We have partnered with the Ministry of Energy to facilitate the development of energy communities and we are committed to engaging citizens in this transformation process. We hope that the identified barriers and recommendations presented today by representatives of the Moldovan Energy Security Action (MESA) project will serve as a solid basis for further changes to the legal framework. To demonstrate the benefits of energy communities, we will continue our support by launching a pilot energy community under the MESA project, highlighting the necessity and benefits of community-led initiatives for a successful energy transition,” noted Michael Curtis, USAID Energy Advisor.

Conference participants learned about policy recommendations for viable renewable energy communities recently developed by UNDP. The document will be a reference point for the authorities of the Republic of Moldova when developing the legal framework for the implementation of energy communities.

“Taking inspiration from European examples, especially Denmark, Sweden, Austria and Slovenia, energy communities are emerging not only as local energy sources, but also as innovation hubs. This is where ideas turn into action, and communities are at the heart of these efforts. UNDP and partners strongly believe that through collective action and innovative approaches, we can pave the way for an energy landscape in Moldova that is affordable, sustainable and safe for all citizens,” said Andrea Cuzyova, UNDP Deputy Resident Representative in the Republic of Moldova.

The conference analyzed European experiences regarding the possibilities of implementing energy communities, especially the regulatory framework and standards used in Austria.

“Denmark is proud of its cooperation with Moldova on the green transition and energy efficiency long before the Russian invasion of Ukraine. Good partnerships with public authorities, the private sector, civil society and local communities are crucial for this project with UNDP. These partnerships create energy communities that are essential to enable sectors to work better together to attract sustainable energy investments and contribute to Moldova’s energy security,” noted Jasmin Frentzel Sørensen, Deputy Head of the Royal Danish Embassy in the Republic of Moldova.

The European approach to energy communities involves the creation of local groups of citizens, businesses and local authorities that work together to produce, distribute and consume renewable energy at local level. Energy communities not only produce clean energy, they also significantly reduce energy bills. European policies and regulations encourage them to promote a sustainable energy transition, achieve climate neutrality by 2050 and create a more sustainable and fair energy system.