Moldova to Align Its Electricity Market with New EU Rules: Focus on Energy Storage, Long-Term Contracts and Market Integration

The Republic of Moldova is preparing a new stage in the reform of its electricity sector in line with updated European Union rules. The Ministry of Energy has submitted draft amendments to the Electricity Law for public consultation. Stakeholders may submit proposals and recommendations until 21 October 2026.

One of the key objectives of the draft legislation is to transpose provisions of Regulation (EU) 2024/1747, which modernised the EU electricity market design. The European framework provides, among other things, for wider use of long-term market instruments, greater protection against short-term price volatility and more favourable conditions for investment in low-carbon generation.

For Moldova, these changes are particularly relevant amid the rapid expansion of renewable energy and the emergence of new electricity storage projects.

The proposed amendments would create broader legal conditions for the use of long-term Power Purchase Agreements (PPAs). Such contracts allow producers, suppliers and major consumers to plan revenues and costs over longer periods and reduce their exposure to short-term fluctuations in wholesale electricity prices.

A separate component of the reform concerns the flexibility of the electricity system. The regulatory framework is expected to facilitate the development of energy storage systems, demand-side management and more efficient balancing during periods of peak consumption.

These instruments are becoming increasingly important as the share of solar and wind generation grows, since their output depends on weather conditions and requires a more flexible electricity system.

The draft also provides for clearer rules governing grid connection and access to available network capacity. The framework for electricity metering will also be modernised, creating conditions for a wider introduction of smart meters and more active participation by consumers in the electricity market.

Another strategic dimension is the strengthening of cross-border cooperation and Moldova's gradual integration into the regional and, ultimately, European electricity market. This includes more efficient use of interconnection capacity and the development of common mechanisms for network management.

Overall, the reform is intended to make Moldova's electricity market more transparent and predictable, encourage investment in generation, storage and grid infrastructure, facilitate the integration of renewable energy and strengthen the security of electricity supply.

Comment by the Institute of Danube Research

For Moldova, this process goes beyond the formal harmonisation of national legislation with the EU acquis. In practice, a new model of the electricity sector is gradually emerging, in which renewable generation, energy storage, demand-side management and long-term market contracts will play an increasingly important role alongside conventional generation.

The development of PPAs and energy storage is particularly significant. For investors, the construction of a solar or wind power plant is commercially viable not only when grid connection is technically available, but also when there is a clear model for selling electricity and generating predictable revenues. Long-term contracts can therefore improve the bankability of new energy projects.

At the same time, as the share of variable renewable generation increases, electricity storage is evolving from an auxiliary technological solution into a core element of the market. Without sufficient flexibility, rapid growth in solar and wind capacity may create additional challenges for system balancing.

The regional dimension is equally important. The modernisation of electricity trading rules and the more efficient use of cross-border interconnections are gradually bringing Moldova closer to deeper integration with the European energy system.

For Ukraine, Romania and Moldova, this process creates additional prerequisites for the emergence of a more interconnected regional electricity market in which cross-border trade, storage facilities and renewable generation operate as complementary elements of a common energy system.

However, the effectiveness of the reform will depend not only on the adoption of legislative amendments. The quality of secondary regulation, transparent access to electricity networks, effective availability of cross-border capacity and economically attractive conditions for private investment will be equally important.