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The funding helps Moldova boost energy security, invest strategically and phase out the use of Russian energy. The European Commission (EC) and the Republic of Moldova have agreed on a comprehensive two-year strategy to bolster Moldova’s energy independence and resilience. The strategy includes a financial support package of €250m ($258.7m) for 2025, to be executed in three steps addressing immediate and long-term challenges. The initiative seeks to decouple Moldova from Russian energy supplies and fully integrate it into the European Union (EU) energy market. The first step involved a €30m EU emergency support package announced in January 2025. The second step will see a further €100m in financial support provided by the EU by mid-April to alleviate energy costs for consumers grappling with soaring energy prices. It includes measures to subsidise electricity costs for households up to 110 kilowatt hours (kWh) each month until 31 December 2025, and a hardship fund to mitigate energy expenses for the most vulnerable households and social institutions. An additional €15m will aid agro-food and manufacturing businesses with their energy bills, while €50m from international financial institutions will fund sustainable energy efficiency projects. €60m is earmarked for 350,000 people in the separatist Transnistrian region left without heat in January 2025 after Russia’s Gazprom cut off energy supplies. This support is contingent upon improvements in fundamental freedoms and human rights in the region, and excludes energy-intensive industries. The third step involves financing actions and investments for Moldova’s energy resilience and independence, with implementation running until the end of 2026. The comprehensive energy support package is part of the EU’s backing for Moldova, with the Moldova Growth Plan expected to provide a boost to the country’s economy and to support its EU accession ambitions. EU Commissioner for Energy and Housing Dan Jørgensen stated: “Ensuring Moldova’s energy security is key for Europe’s long-term resilience and independence from Russian supplies. This comprehensive package shows our determination to support the most vulnerable in Moldova, as we continue to pursue our clean transition together. “This is the most effective way to ensure home-grown, clean, stable and independent energy systems underpin our prosperity and competitiveness.” The EU has already provided €240m in direct budget support to Moldova’s energy system from 2021 to 2024, benefiting 750,000 households through the Energy Vulnerability Reduction Fund (EVRF). The EU has also contributed €67m in grants, leveraging €640m in investments for energy efficiency and green transition initiatives. Moldova has also received €295m in EU macro-financial assistance since 2023, with a focus on energy sector reforms. |
