Business identifies key barriers to energy investment in Moldova

Business Leaders Identify the Main Barriers to Investment in Moldova’s Energy Sector

Energy companies and Moldova’s largest business associations have called on the Cabinet of Ministers to accelerate energy market reform, stating that investors continue to be hindered by protracted procedures, a lack of grid infrastructure, and regulatory uncertainty. These issues were the central focus of the Ministry of Energy’s first consultations with market participants.

photo AFP

Essentially, the business community has proposed a roadmap for further reforms to the government. Among the top priorities are completing the liberalization of the electricity and natural gas markets, accelerating the modernization of transmission and distribution networks, simplifying the process of connecting new generation facilities, and speeding up the implementation of European energy legislation.

Special emphasis was placed on the development of renewable energy. According to industry representatives, investor interest in building solar and wind power plants continues to grow; however, the capacity of the power grid does not always allow for the rapid connection of new generating capacity. Therefore, the business community called for accelerating investments in electricity transmission and distribution networks.

Operators also pointed to Moldova’s EU-funded Growth Plan. Company representatives believe that a portion of European funds should be directed specifically toward modernizing the energy infrastructure, without which further market liberalization will prove difficult.

Energy Minister Dorin Junghietu acknowledged the need for closer cooperation with the private sector. According to him, the ministry intends to continue consultations with the market, and the business community’s proposals will be taken into account when developing new solutions for the industry.

It should be noted that the consultations took place against the backdrop of the ongoing restructuring of Moldova’s energy sector. Following the 2022–2023 energy crisis, the country has accelerated its integration with the European electricity and gas markets and is focusing on developing its own renewable energy generation. However, industry associations have repeatedly warned that further investment inflows will depend not only on the volume of funding but also on the pace of reforms, grid modernization, and regulatory stability.

Representatives of the European Business Association (EBA Moldova) and the American Chamber of Commerce in Moldova (AmCham Moldova) identified these very issues as key conditions for the market’s further development.